Malaysia’s 2026 growth forecast lifted to 5.1%
The World Bank linked its higher projection to export growth supported by global spending on artificial intelligence.
Malaysia’s economy is forecast to grow by 5.1% in 2026, up from the World Bank’s previous projection of 4.4%, as rising global artificial intelligence (AI) spending supports exports.
Speaking at the bank’s East Asia and Pacific Economic Update, its chief economist for Asia, Franziska Ohnsorge, said goods that enable AI accounted for a substantial share of Malaysia’s export growth. She noted similar patterns in Vietnam, Thailand and the Philippines, which also participate in supply chains serving AI-related industries.
The bank also revised Vietnam’s growth forecast from 6.3% to 7.4% and Thailand’s from 1.3% to 2%. Its projection for the Philippines remained at 3.7%, while regional growth was forecast at 4.5%.
Ohnsorge said the region’s electronics industry was benefiting from its role in AI value chains, although high energy costs were constraining other sectors.
She cautioned that exposure to AI spending could become a vulnerability if global AI-related activity undergoes a correction. The bank also identified prolonged high energy prices and reduced agricultural output caused by El Niño as risks to regional growth.
