KUALA LUMPUR (March 10): Malaysia’s industrial production is expected to sustain its upward momentum this year but an escalation in the Middle East conflict and uncertainties surrounding US tariffs could dampen trade flows and export growth, said economists on Tuesday. This following the release of the industrial production index (IPI) for January, which showed a 5.9% year-on-year growth. January’s growth was higher compared with the 5.0% average growth predicted by Bloomberg’s economists and December’s 4.6% year-on-year gain. Kenanga maintained its 2026 gross domestic product growth forecast at 4.5%. Meanwhile, RHB Research forecast IPI to grow by 4.1% in 2026, underpinned by strong domestic private consumption and investment, driven by steady income growth and confidence in labour market conditions.

Source: The Edge Markets March 10, 2026 13:25 UTC