Malaysian Economy Shows Strong Resilience Amid Global Headwinds — AMRO

SINGAPORE, Feb 6 (Bernama) -- The Malaysian economy has demonstrated notable resilience despite rising global trade protectionism and geopolitical tensions, said the ASEAN+3 Macroeconomic Research Office (AMRO).

Its lead economist, Kian Heng Peh, said the country's economy outperformed expectations in 2025, supported by robust domestic demand and the global tech upswing.

“Growth is expected to remain firm in 2026, moderating slightly to 4.6 per cent from the estimated 4.9 per cent in 2025 amid persistent external headwinds,” he said in a statement today.

AMRO said robust electronics exports and artificial intelligence (AI)-related investment have supported growth, reflecting Malaysia’s entrenched position in global semiconductor and electronics value chains and its gains from the ongoing global tech upcycle.

"Political stability, as well as policy clarity and credibility, have reinforced investor confidence.

"Sustaining this investment momentum will require preserving macroeconomic and financial resilience, deepening domestic capabilities, and strategically positioning Malaysia as a trusted hub amid geoeconomic fracturing," it said.

According to AMRO, Malaysia is undergoing a nascent investment upcycle that presents a timely opportunity to accelerate structural upgrading and lift long-term growth potential.

"To translate this momentum into durable gains, policy priorities should focus on preserving macro-financial resilience, deepening domestic capabilities, and strategically positioning the economy amid geoeconomic fracturing," it added.

-- BERNAMA