Moderator and Executive Director of the Malaysian Institute of Economic Research (MIER), Tan Sri Dr. Sulaiman Mahbob (left), together with World Bank Malaysia Lead Economist Dr. Apurva Sanghi (second left), Asian Development Bank (ADB) Southeast Asia Regional Principal Economist James Villafuerte (second right), and MIER Non-Resident Senior Fellow Dr. Khalid Abdul Hamid (right), speak during the National Economic Outlook Conference (NEOC) held at the AFFIN Tower Auditorium, TRX. NSTP/ HARI ANGGARA
KUALA LUMPUR: Malaysia’s economy is expected to post steady growth next year, supported by solid domestic fundamentals and policy measures under the 13th Malaysia Plan (13MP), said the Malaysian Institute of Economic Research (MIER).
MIER non-resident senior fellow Dr Khalid Abdul Hamid said the country’s outlook remains positive despite global uncertainties, with gross domestic product projected to expand around 4.0 per cent in 2026.
“For 2026, it will be 4.0 per cent. We don’t have a forecast yet for 2027, but it will likely be around the same level,” he told reporters after the National Economic Outlook Conference today.
Khalid said the growth momentum is partly supported by a lower base effect.
“It will not be like the six or seven per cent we saw in the 1990s, but the low base makes it more comfortable for growth going forward.”
He said Malaysia’s performance in 2025 will set the tone for the following years, with early indicators pointing to possible upside.
“The 2025 numbers show potential. We could be looking at growth improving from 5.2 per cent to around five or 4.7 per cent,” he said, citing the economy’s resilient structure, with the services sector continuing to anchor expansion.
“Services play a big part, about 60 to 65 per cent. Manufacturing is about 15 to 27 per cent, and mining should improve next year after some disruptions this year,” said Khalid.
He added that Malaysia can remain relatively insulated from global risks as long as its domestic structure stays strong.
