KUALA LUMPUR: Malaysia’s policy consistency and stronger economic fundamentals continue to support investor confidence, even amid concerns over the domestic political environment, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.
The governor was responding to questions on whether the current domestic political environment could pose a downside risk to Malaysia’s targeted 4 to 5 per cent gross domestic product (GDP) growth for 2026.
He emphasised that the Malaysian economy has demonstrated notable resilience, supported by intact growth drivers and sustained reform efforts.
"On political uncertainty, you must know that our economy has shown a great deal of resilience because our economic fundamentals remain strong and our growth drivers are intact.
"Malaysia has had a very good track record of policy consistency and continued reforms, which will continue to support investor confidence,” he said in a press conference after announcing Malaysia’s second quarter 2026 GDP today.
Citing a recent global sukuk issuance roadshow as an example, Abdul Rasheed said investor appetite for Malaysian assets remained robust, with the issuance oversubscribed by about five times.
"In our engagements, investors consistently highlighted the strength of Malaysia’s macroeconomic outlook and policy consistency as key factors supporting their positive sentiment,” he said.
On the role of the data centre investments, the governor acknowledged that both data centres and the electrical and electronics (E&E) sector have been significant contributors to growth in recent quarters.
"Data centre investments have been substantial, and while we may see some moderation due to the high base in previous quarters, the investment momentum will continue,” he said.
He noted that the ongoing global technology upcycle, expected to remain strong at least until 2026, will continue to support Malaysia’s growth trajectory.
BNM’s assessment is consistent with investment trends reported by the Malaysian Investment Development Authority (MIDA), with approved investments in the information and communications technology sector rising to RM38.9 billion in the first quarter of this year from RM35 billion in the same period last year.
Abdul Rasheed also highlighted strong demand for Malaysia’s E&E exports, driven by the rapid global expansion of artificial intelligence (AI) adoption.
"Malaysia is well integrated into the global AI value chain, and demand for our semiconductor products remains strong,” he said, adding that multinational corporations have reported a significant increase in order book visibility.
"Earlier this year, order books were at around four to six months; more recent engagements show visibility has extended to between 12 and 18 months, reflecting sustained demand,” he added.
Abdul Rasheed said global AI adoption remains at an early stage, suggesting further upside potential for Malaysia’s export-oriented sectors and private investment.
Overall, the governor maintained that Malaysia’s economic outlook remains supported by resilient domestic demand, strong external sector performance and continued investment in high-growth sectors such as technology and digital infrastructure. - Bernama
