ECONOMY / KEY INFRASTRUCTURE UPDATES​

• Malaysia’s economy is estimated to grow by 5.3% in 1Q 2026 (1Q 2025: 4.4%), driven by a better performance in the Services and Manufacturing sectors.
• The GDP growth in 2026 is expected to remain resilient at 4.0% to 5.0%, by resilient household spending, continued investment, export growth, and steady tourism, despite ongoing geopolitical tensions.
• The headline inflation rate remains well-contained at 1.6% in 1Q 2026, only slightly higher than 1.5% a year ago, indicating that price pressures are stable and broadly manageable.
• For 2026, the headline inflation forecast has been revised upwards to a range of 1.5% to 2.5%, reflecting potential risks from global energy supply disruptions and geopolitical developments.
• The Overnight Policy Rate (OPR) is expected to remain broadly unchanged in 2026, supported by steady growth prospects and contained inflation levels, but may face upward pressure toward the end of the year in the event of prolonged energy supply disruptions.
• Global trade volatility and ongoing geopolitical uncertainties continue to pose challenges to the external outlook.