In a research note on Friday, Nomura said Malaysia’s position as a net energy exporter provides some insulation against rising oil prices, helping to support external balances. “Despite rising oil prices due to the Iran conflict, we think external balances and growth will be resilient, as Malaysia is a net energy exporter,” said the investment bank. With its cautiously optimistic outlook on Malaysia, Nomura revised its forecast for headline consumer price inflation in 2026 to 2.1% from 2%, to reflect the impact of higher crude oil prices. It added that there may be a boost to government revenue if higher oil prices are expected to increase subsidy spending. “We pencil in higher subsidy and social assistance spending, owing to the lack of additional subsidy reforms, which we expect to be offset by lower-than-budgeted gross development expenditures,” said Nomura.

Source: The Edge Markets March 06, 2026 05:39 UTC