Malaysia: Malaysia's economy is expected to grow by around 5 per cent in 2026, supported by strong momentum in the country's current economic growth, said Economy Minister Akmal Nasrullah Mohd Nasir. He noted that the government aims for a growth rate between 4 per cent and 5 per cent this year, with expectations of reaching the higher end of that spectrum.
According to BERNAMA News Agency, Bank Negara Malaysia's Monetary Policy Committee has maintained the Overnight Policy Rate (OPR) at 2.75 per cent, aligning with the outlook for continued price stability and sustainable economic growth. The OPR has remained unchanged for eight consecutive meetings since July 2025. Akmal Nasrullah highlighted the substantial contributions of the electrical and electronics sector, including the semiconductor industry, to the country's recent economic expansion.
He emphasized the need to consider the country's economic performance holistically, factoring in robust growth alongside controlled inflation, which stood at approximately 1.8 per cent in July. The minister noted that the government's fiscal measures have facilitated the maintenance of a moderate cost of living, supported by recent fiscal announcements from the prime minister.
Looking ahead, the government plans to outline its next framework in Budget 2027, scheduled for October. Akmal Nasrullah stressed the importance of assessing economic growth by its societal impact and the extent to which it supports citizens in managing living costs.
During a forum session entitled "The Future is Here - Going Beyond Borders," Akmal Nasrullah discussed the necessity of institutionalizing policies and commitments for continuity, particularly for long-term investments. He underscored the significance of implementing existing commitments rather than introducing new concepts without necessity.
Furthermore, the minister addressed the need for policy institutionalization through legislation, especially concerning energy efficiency and carbon capture and storage initiatives. On the topic of nuclear energy, he advocated for a structured approach to policy commitments, supported by legislative backing.
Akmal Nasrullah concluded by emphasizing the importance of transparency and evidence-based adjustments in policies and frameworks as market conditions and technologies evolve. He highlighted that industry credibility hinges on action and implementation, cautioning against unpredictability.