Domestic strength, reforms to drive growth


The report said assessing the impact of global uncertainties and higher tariffs imposed by the United States have been a daunting task for developing countries, including Malaysia.

THE government, in the Economic Outlook 2026 report, projects Malaysia’s domestic economy to grow between 4% and 4.8% in 2025 on continued recovery across key sectors and supportive policy measures.

This growth momentum would continue into 2026, with the economy forecast to expand between 4% and 4.5%, underpinned by robust domestic demand and a resilient external sector.

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