Malaysia’s Finance Ministry forecasts steady economic growth for 2026
In its Pre-Budget Statement 2026, the ministry stated that growth will be anchored by resilient domestic demand, particularly through private investment, stable employment, and income-enhancing measures such as targeted cash transfers and wage increases.
Malaysia's Ministry of Finance projects the country’s economy to grow at a moderate pace in 2026, driven by resilient domestic demand and strategic investments under Budget 2026. (Photo: www.malaymail.com)
Kuala Lumpur (VNA)ꦑ - Amid uncertainties in global trade and weak external demand, Malaysia’s Ministry of Finance projects the country’s economy to grow at a moderate pace in 2026.
In its Pre-Budget Statement 2026, the ministry stated that growth will be anchored by resilient domestic demand, particularly through private investment, stable employment, and income-enhancing measures such as targeted cash transfers and wage increases. The tourism sector, driven by Visit Malaysia 2026, is also set to contribute significantly to services growth. In this context, Budget 2026 will prioritise strengthening domestic sources of growth, diversifying export markets, and expanding household income opportunities.
Public investment will be advanced through strategic projects under the 13th Malaysia Plan (13MP) and increased domestic direct investment (DDI) by government-linked investment companies (GLICs) through the Government-linked Enterprises Activation and Reform Programme (GEAR-uP), reinforcing the foundations for inclusive and sustainable economic resilience.
In the first quarter of 2025, gross domestic product (GDP) expanded 4.4%, driven by household consumption, investment and the construction sector. The momentum is expected to continue in the second quarter of 2025, with an advance estimate indicating growth at 4.5%. Despite global developments, the Malaysian economy remained resilient and is projected to expand by 4-4.8% in 2025. Inflation abated further to 1.1% in June from 2% in the previous year, marking the lowest pace in 52 months.
Meanwhile, the labour market continued to strengthen, with the national unemployment rate declining to 3% in May, down from 3.3% in May last year.
On currency, the ringgit emerged as one of Asia’s best-performing currencies as at August 6, appreciating 5.8% to 4.2270 MYR against the US dollar./.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The new framework is designed to ensure that incoming investments deliver tangible national benefits, such as the creation of high-quality jobs for Malaysians and the development of local company ecosystems and technologies.
Nuclear energy has long been identified as a strategic area, with the Malaysian Ministry of Science, Technology and Innovation playing a key role in advancing related technologies, developing talent, and formulating the regulatory framework.
Singapore is at risk of chikungunya transmission as the number of reported cases this year has more than doubled compared to last year, the country’s Communicable Diseases Agency (CDA) has reported.
On August 11, major RoK outlets, including Yonhap News Agency, KBS, The Korea Herald, and The Korea Times, provided prominent coverage of the talks held the same day between General Secretary Lam and President Lee Jae Myung, during which both sides agreed to strengthen cooperation in economy, security, technology, and culture.
The Singaporean government needs to enable people, workers and businesses to make full use of these tools, and enhance their competitive advantage. It “will walk this journey” with Singaporeans as it has done for the past six decades, said Prime Minister Lawrence Wong.
The meeting provided an opportunity to reaffirm both ASEAN member states' and partners’ commitment to strengthening cooperation and narrowing development gaps.
Thailand emits roughly 350 million tonnes of carbon dioxide equivalent annually, with the energy and industrial sectors accounting for more than 75% of this amount. Though this volume represents just 1% of global emissions, the Thai Government is eager to achieve carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050.
The Malaysian government is undertaking a structured assessment to examine the role of nuclear power as a potential option for clean, stable, and competitive electricity within Malaysia’s future energy mix.
It aims to identify and honour digital technology initiatives, products, and solutions with practical applications; promote creativity in technology development; anticipate trends and development potential in digital technology; and recognise the role of digital technology in economic growth and enhancing quality of life for citizens in ASEAN countries.
Addressing the ceremony, Indonesian Ambassador Simon D.I. Soekamo, the rotating Chair of the ASEAN Committee in Cuba, highlighted the bloc's spirit of friendship and solidarity, and reaffirmed ASEAN's core values of peace, stability, and prosperity through cooperation and dialogue.
Vietnam’s pavilion notably displayed traditional crafts from the centuries-old lacquerware village of Ha Thai and Chu Dau ceramics. The atmosphere was further enriched by delegations wearing their countries’ traditional costumes, including the elegant ao dai and the graceful ao tu than of Vietnamese women.
The handover ceremony was held at the Malaysian Embassy headquarters in Mexico City on August 8, with the presence of heads of diplomatic missions from ASEAN member states in Mexico.
Total trade between Indonesia and New Zealand in the first half of 2025 reached 963.23 million USD, an increase of 21.56% compared to 792.39 million USD in the same period last year. Of this amount, Indonesia's exports to New Zealand totaled 374.89 million USD, while imports 588.35 million USD
Malaysia, as ASEAN 2025 Chair, marked the bloc’s 58th founding anniversary on August 8 with a vibrant celebration in Cyberjaya, blending an official ceremony with a colorful cultural festival.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
