KUALA LUMPUR: Malaysia’s economy is projected to grow 4.7 per cent in 2026, supported by technology-related exports and investment as well as robust domestic demand, according to the World Economic Forum (WEF).
In its latest Chief Economists’ Outlook - September 2026, WEF said the growth outlook for Southeast Asia remains broadly resilient, with 97 per cent of chief economists surveyed expecting growth in the region to moderate or strengthen over the next 12 months.
Of these, 73 per cent anticipate stronger or very strong growth, compared with 69 per cent who expected moderate or stronger growth in May.
Country-level forecasts remain differentiated, with Vietnam’s growth projected at 7.5 per cent and Thailand’s at 1.9 per cent in 2026, supported to varying degrees by technology-related exports and investment, and robust domestic demand.
Labour market expectations are also favourable, with 79 per cent of respondents expecting unemployment to remain unchanged and 14 per cent anticipating a decrease.
More broadly, manufacturing, resilient exports and investment, and steady domestic demand continue to support growth across developing Southeast Asia.
Meanwhile, inflation expectations have also improved since May.
Of the chief economists surveyed, 53 per cent expect moderate inflation and 41 per cent high inflation over the next 12 months, compared with 54 per cent expecting high or very high inflation in May.
Inflation for developing Southeast Asia is nevertheless projected at 3.9 per cent in 2026, up from a 3.2 per cent forecast earlier in the year, reflecting higher global energy and food prices as well as exchange-rate pressures that have raised import costs across the subregion.
At the same time, strong technology demand, firm household spending and resilient investment are helping to support regional activity, although renewed disruption could again raise energy and shipping costs.
The survey featured in this edition was conducted from Aug 4-20, 2026. - Bernama
