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Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour said policy consistency, strong economic fundamentals and ongoing reforms are sustaining investor confidence despite domestic political concerns, while data centre investments and strong demand for semiconductors amid the global AI boom continue to support Malaysia’s growth outlook.

Speaking at a press conference after announcing Malaysia’s second quarter 2026 GDP on Friday (Aug 14), Abdul Rasheed said Malaysia’s E&E order-book visibility has lengthened to 12-18 months, signalling sustained export demand and further investment potential.

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00:00You must know that our economy has shown a great deal of resiliency and why I
00:09say this is that number one our income fundamentals remain strong and our
00:14growth drivers are intact and Malaysia has had a very good track record of policy
00:20consistency and continued reforms which will continue to support investor
00:25confidence and we have seen even let me just share this one example when we had
00:31our recent roadshow for the issues of global sukuk we have seen strong investor
00:36sentiment and confidence in the country and that is can be seen in the outcome
00:42of the global issues as well we had bid to cover of close to five percent five
00:50times in terms of the size that we issue and in our engagement the
00:55investors they keep on highlighting in terms of the strength of the economy the
01:00strength of the fundamentals of the economy itself and the policy consistency as
01:05something that is an anchor for their continued positive sentiment on the
01:09economy. Victoria question on data centre whether it is a huge contribution to
01:14growth yes E&E and the centre has been contributing to growth substantially for
01:20this last few quarters and based on estimates and ongoing and planned projects for
01:29data centre we see that data centre investment will continue although there will be
01:34some adjustments because we have seen high base in the last few quarters in
01:38terms of investments very high but there'll be some adjustments but the
01:42investment will continue in data centre. Second is that the tech up cycle will
01:48continue to remain strong and based on our assessment the tech up cycle will
01:54continue to be strong at least until 2028 and this will continue to support the
01:59economy and this is also consistent with what we saw in Midas approval
02:08investment for ICT for example Q1 this year is about 38.9 billion as compared to
02:16what we saw in Q1 last year at 35 billion so the trend is there and demand for our E
02:22&E
02:22products will also continue to support the AI and I believe this will remain strong why
02:30because we are very well plugged into the AI global value chain and if you look in
02:37terms of our engagement with the MNC's that's providing the semiconductors in
02:44particular their order books have increased it's very strong in fact when we engaged with
02:49them earlier this year they share with us their order books is about four to six
02:54months but we engaged with them recently in June they indicated their order books is
03:00solid for between 12 to 18 months so that shows the strong demand that's coming from this AI
03:07developments and you must also note that this AI adoption globally is still at an
03:15early stage so the potential for this to grow that will then reflected in demand
03:19for our products is very high so I will say that it will continue to be there for the time
03:27being
03:29Cindy your question about growth we projected growth to be between four to five
03:34percent so that's why we said we are confident that it will be within the
03:39range of our growth but given the performance of the first two quarters
03:45first half is five point seven percent and we are confident that it will remain
03:50within this range initially if you remember I did indicate that at the last
03:56quarter one meeting that we are confident that will be in the upper end of the range but given the
04:04data point
04:04that we are seeing and also the high frequency data that we are monitoring and
04:09we are observing we are confident that will be around five but again in terms of
04:14whether are we going to change our forecast range or not so that is where if you
04:20were to change we normally do it when we announce budget so that's where the
04:23minister finance will do if there is need for us to change
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