PETALING JAYA: Resilient private consumption is expected to support Malaysia’s economic growth in 2026, on the back of stable employment conditions, the second phase of the civil service salary hikes in January, and a rise in tourist arrivals from Visit Malaysia 2026.
Economists project that the economy, as measured by gross domestic product (GDP), will grow faster than the government’s more cautious forecast of 4% to 4.5%, with Nomura raising its GDP forecast to 5.2% from 4%. Nomura also expects 2025 GDP growth of 4.8%.
