Credibility is Malaysia’s 2026 test

For investors, policymakers and businesses alike, 2026 will be more about whether Malaysia can execute without missteps.

THE ringgit has strengthened about 17% since early 2024, foreign investors poured US$6.5bil into local currency bonds in 2025, and the benchmark equity index is up 12% year-on-year, hitting levels last seen in 2018.

Headline macro indicators look reassuring. Unemployment fell to 2.9% in November 2025, its lowest level since 2014.