KUALA LUMPUR: Kenanga Investment Bank Bhd
maintains its 2025 gross domestic product (GDP) growth forecast at 4.8 per cent and projects a moderation to 4.2 per cent in 2026, supported by a stable Manufacturing Purchasing Managers’ Index (PMI).
In a research note today, it said manufacturing PMI averaged 49.9 in the fourth quarter of 2025 (4Q 2025), closer to the neutral mark of 50.0, indicating broadly stable conditions despite global uncertainty from US tariffs.
"With steady services expansion and resilient domestic demand, GDP growth is likely to hold in the final quarter,” it said.
Moreover, the investment bank said the latest PMI readings, which held steady at 50.1 in December 2025, indicate broadly stable operating conditions despite persistent tariff-related uncertainties.
"Exports-oriented sectors have cushioned weaker US-bound shipments by redirecting goods to alternative markets.
"However, caution remains as the delayed impact of higher US tariffs could weigh on orders after the festive period,” it said.
Nonetheless, Kenanga IB said the electrical and electronics (E&E) sector is expected to stay resilient given its exemption from higher tariffs.
"Domestic-oriented industries are set to benefit from household spending, ongoing fiscal support under Budget 2026 and initiatives under the 13th Malaysia Plan,” it added. - Bernama
