Skip to playerSkip to main content
  • 9 hours ago
Bank Negara Malaysia (BNM) estimates Malaysia's economy to grow between four per cent and five per cent this year compared with 5.2 per cent registered in 2025, with the country's domestic resilience and diversified export structure continuing to provide buffer to navigate the current external headwinds mainly from conflict in West Asia.

Read more at https://tinyurl.com/2u8ut3xu

WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
Transcript
00:05let me now turn to Malaysia although the year 2025 was extremely challenging the
00:11domestic economy navigated it very well growth reached 5.2% while inflation
00:18remained low at 1.4% domestic demand stayed firm and exports showed
00:25resilience credit to the private non-financial sector grew by 5.4% with SME
00:32financing expanding by 5.9% of significance the ringgit steadily
00:39strengthened throughout 2025 continuing from 2024 the ringgit once again
00:46performed well last year appreciating against the US dollar and key trading
00:52partners global factors such as the dollar performance played a role but so did our
00:59domestic strength year to date this positive positive trajectory has
01:03continued although the recent developments are causing some movements and going
01:10forward the ringgit will remain driven by market conditions and global forces and
01:16towards this end by negara Malaysia is committed to ensuring and orderly markets
01:21this brings us to the outlook Malaysia enters 2026 from a position of strength to
01:28navigate the challenges ahead our strength lies in first the diversified growth
01:35drivers with cushions to preserve external sector strength second the healthy
01:42balance sheet positions among households and firms third the strong financial sector that
01:49supports the economy to grow and for the sufficient macroeconomic policy space both monetary policy and fiscal policy and
01:59fiscal policy and taking into account all these factors the nation economy is expected to grow at the resilient pace
02:07of between 4 and 5% in 2026
02:11now let's look at the drivers of growth household consumption remains a key anchor of growth
02:18income prospects are positive with continued income growth
02:22labor market remains firm with unemployment expected to remain near its decade low at around 2.9%
02:30targeted policy support are also in place to help Malaysians in need on investments the positive news is investment approvals
02:41levels continue to increase reaching to 427 billion ringgit last year while implementation rate for manufacturing projects remain high at
02:52around 85%
02:53clear policies and incentives diversified supply chain and strong infrastructure as well as skilled workforce are among the factors that
03:05attract investors
03:06we see private sector capacity expansion
03:10we see private sector capacity expansion gaining traction led by the ICT and the E&E industries
03:14we also see progress under the national master plans and major public investments including renewable energy and the transportation projects
03:24the realization of these investments will strengthen Malaysia's productive capacity for the future
03:31moving on to trade
03:35while the external conditions uncertain and challenging
03:40real exports growth is expected to be moderate at 2.8%
03:45despite the headwinds there are three three points that's worth noting
03:50one is that we have a diversified export base
03:54no single country accounts for more than 16% of our exports
03:58and across products
04:00Malaysia also exports different goods and services
04:03from commodities to advanced services
04:07number two
04:08rising data center investments
04:11lifting the ICT services exports
04:13with wider spillovers across industries
04:16and third
04:18supported by its deep roots and engages
04:21our E&E sector is well-positioned to gain from the global tech investment cycle
04:28not many countries can showcase such a diversified external sector
04:34annales
04:35nations
04:36solve rangers
04:48capital
Comments

Recommended