Strong Momentum To Drive Malaysia’s Economy To 5 Pct Growth In 2026 - Akmal Nasrullah
KUALA LUMPUR, Sept 3 (Bernama) -- Malaysia's economy is expected to grow by around 5 per cent in 2026, supported by strong momentum in the country's current economic growth, said Economy Minister Akmal Nasrullah Mohd Nasir.
He said the government aims for a growth rate between 4 per cent and 5 per cent this year.
"Based on current conditions, the economy is expected to expand at around the upper end of that range. Given the current conditions, we are confident that growth will be around 5 per cent," he told reporters after delivering a keynote address at the Oil and Gas Asia (OGA) 2026 conference here today.
Bank Negara Malaysia's Monetary Policy Committee also maintained the Overnight Policy Rate (OPR) at 2.75 per cent today, in line with the outlook for continued price stability and sustainable economic growth.
The OPR has remained at 2.75 per cent for eight consecutive meetings since July 2025.
Akmal Nasrullah said the electrical and electronics (E&E) sector, including the semiconductor industry, had been among the biggest contributors to economic growth in recent months and was expected to continue expanding.
"Based on our observations, the industry is indeed expected to continue contributing to growth, together with the manufacturing sector and others," he said.
Akmal Nasrullah said the country's economic performance should be viewed holistically, taking into account both robust growth and inflation, which remained under control.
He said the economy had grown by around 6 per cent in the previous quarter, while inflation stood at about 1.8 per cent in July.
He said these developments had provided monetary stability, while the government's fiscal measures had also created room to ensure that the cost of living remained moderate.
"At the same time, at the government level, the recent announcements by the prime minister on the fiscal front will undoubtedly give us further room to keep the cost of living at a moderate level," said the minister.
He said the government's next framework would be set out in Budget 2027, which is scheduled to be tabled in October.
Akmal Nasrullah said the country's economic growth should also be assessed according to how far its benefits were felt across society.
"The growth we are enjoying must also be assessed in terms of its impact on society as a whole, and how it enables the government to continue providing people with support and scope to manage the cost of living," he said.
Akmal Nasrullah was also a panellist at a forum entitled "The Future is Here - Going Beyond Borders", alongside Malaysian Gas Association president Abang Yusuf Abang Puteh, Shell Malaysia country chair and senior vice-president for upstream Malaysia Siti Hurrairah Sulaiman, and Hibiscus Petroleum Bhd managing director Datuk Dr Kenneth Gerard Pereira.
During the session, the minister said Malaysia needed to institutionalise its policies and commitments to ensure continuity, particularly for investments with a 20 to 30-year horizon, extending beyond political and leadership cycles.
He said the focus should be on establishing a clear national direction and carrying forward existing commitments, rather than introducing new ideas simply for the sake of doing so.
"Being effective is not about coming up with new ideas. It is about implementing those ideas and making sure you achieve the outcomes you want," said Akmal Nasrullah.
He said the government also needed to ensure that policies were institutionalised, including through legislation, such as its commitments on energy efficiency and carbon capture and storage.
On nuclear energy, Akmal Nasrullah said similar steps would need to be taken to institutionalise the process, including ensuring that policy commitments were supported by legislation.
"The lesson from previous political developments is that this cannot be merely rhetoric or a broad commitment; the process must be properly institutionalised," he said.
Akmal Nasrullah also said policies and frameworks might need to be adjusted as market conditions and technologies evolved.
He emphasised that any changes should be made transparently, based on evidence, and with consideration of feedback from the industry.
"Unpredictability is a nightmare for any industry," said Akmal Nasrullah, adding that credibility would ultimately be built through action and implementation.
-- BERNAMA