Malaysia growth forecasts raised to 5.1 per cent for 2026, 4.8 per cent for 2027
AMRO kept its 2026 inflation estimate at 2.0 per cent but lifted the 2027 projection to 2.2 per cent.
Malaysia’s economy is forecast to expand by 5.1 per cent in 2026 and 4.8 per cent in 2027, according to revised estimates from the ASEAN+3 Macroeconomic Research Office (AMRO). The earlier projections were 4.9 per cent and 4.7 per cent, respectively. AMRO attributed the increases to artificial intelligence (AI)-related exports and investment.
The October update to its ASEAN+3 Regional Economic Outlook (AREO) left the Malaysian inflation estimate for 2026 at 2.0 per cent. For 2027, AMRO now anticipates inflation of 2.2 per cent, compared with its previous 2.0 per cent projection.
Speaking at a press conference, AMRO chief economist Dong He described Malaysia as a significant beneficiary of the AI investment cycle. He encouraged the government to use the upcoming budget to extend the gains across the economy, and to review subsidy schemes with a view to more targeted support.
Dong He said AMRO’s optimism about Malaysia was conditional on the country tackling key challenges, remaining welcoming to investment and sustaining engagement with major trading partners.
Across ASEAN+3, the AREO put growth at 4.1 per cent for 2026 and again for 2027, alongside inflation estimates of 1.6 per cent and 1.7 per cent, respectively. It said AI demand could boost or weaken investment and exports. Risks included further energy disruptions in West Asia, a longer-lasting El Nino, volatility in financial markets and additional protectionist measures.
