IMF forecasts Malaysia GDP growth of 5.2% in 2026
Growth is expected to reach 4.7% in 2027, while technology exports and data centre investment support the regional economy.
The International Monetary Fund (IMF) expects Malaysia’s economy to expand by 5.2% in 2026, followed by 4.7% in 2027, against an uncertain regional backdrop.
Its October 2026 Regional Economic Outlook for Asia and the Pacific identified technology exports and data centre investment as contributors to regional growth. Malaysia and Singapore had expanded exports through technology product assembly and packaging, the IMF said.
The IMF put Malaysia’s operating data centre capacity at more than 1,000 megawatts (MW). A further capacity of more than 1,500 MW was under construction. Across the region, data centre investment had also boosted demand for intermediate goods supplied by countries including Thailand and Vietnam.
On prices, the IMF said higher energy costs had had a relatively limited effect on headline and core inflation in most advanced and emerging market economies. It attributed this partly to inventories and measures to smooth prices, including those used in Malaysia.
Malaysia’s measures included freezes on fuel or utility prices and subsidies, alongside credit guarantees or liquidity facilities to support exposed sectors and households, according to the IMF.
The IMF also said Malaysia’s per capita consumption had risen faster than income, helped by a notable increase in household bank borrowing. It recommended policies to make consumption more resilient in economies including Malaysia and Thailand, particularly for vulnerable households and those carrying high debt.
