If current momentum holds, Kenanga Research said there is “upside potential” towards a 5% gross domestic product (GDP) growth in 2026. Following the strong momentum, Hong Leong Investment Bank (HLIB) Research has upgraded its GDP growth forecast for 2026 to 4.7%. On the demand side, growth was driven by stronger domestic demand and export growth. Additionally, on Jan 5, 2026, Prime Minister Datuk Seri Anwar Ibrahim announced a series of measures spanning economic, education, and institutional reforms to reinforce Malaysia’s GDP growth momentum for this year. In view of such developments, UOB Global Economics & Markets Research expects a real GDP growth of 4.5% in 2026.

Source: The Star February 17, 2026 12:03 UTC