Economic fundamentals solid amid cost pressures


KUALA LUMPUR: Malaysia’s economic fundamentals remain strong despite mounting global cost pressures arising from ongoing geopolitical tensions, says the Association of Chartered Certified Accountants (ACCA).

In a statement yesterday, it said the ACCA and Institute of Management Accountants’ Global Economic Conditions Survey for the second quarter of 2026 (2Q26) found that while businesses worldwide continue to grapple with rising operating costs, Malaysia has weathered the global uncertainty relatively well.

“For Malaysia, higher logistics, fuel and raw material costs continued to affect businesses, particularly import-dependent sectors, and small and medium enterprises.

“Nevertheless, the country’s economic fundamentals remained resilient, with inflation moderating to 1.9% in June 2026, while the economy expanded by 5.8% in 2Q26, supported by robust domestic demand and stronger manufacturing, mining and services activity,” it added.

The ACCA said the government has also continued to cushion external pressures through RM54.7bil in subsidies, assistance and incentives this year to help stabilise prices and ease the burden on households.

ACCA Maritime South-East Asia portfolio head Andrew Lim said Malaysia’s outlook is supported by contained inflation, steady domestic demand and targeted policy measures. “However, businesses should remain agile and manage costs carefully as global volatility is likely to persist.”

Globally, the survey revealed that the ongoing conflict in West Asia continued to weigh on the global economy, with more than three-quarters of accountants worldwide reporting higher operating costs in 2Q26, driven by rising commodity prices and supply chain disruptions.

The ACCA said that among chief financial officers, 83% experienced increased costs, close to the highest levels recorded in 2022 and 2023.

Despite mounting cost pressures, global confidence improved from the near-record lows recorded in 1Q26. — Bernama

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