Malaysia’s Macroeconomic Stability Key To Navigating Global Challenges

KUALA LUMPUR, April 9 (Bernama) -- Malaysia’s ability to sustain macroeconomic stability is crucial in navigating global economic challenges amid ongoing West Asia tensions, said Juwai IQI global chief economist Shan Saeed.

He said Malaysia has remained disciplined in its policies while sustaining investor confidence amid heightened geopolitical uncertainty and increasing fragilities in the global economy.

“Malaysia has solid energy policy discipline, moving from blanket to targeted subsidies and saving RM600 million per month. This translates into RM7.2 billion per annum, which is huge.

“Markets are no longer pricing growth; they are pricing economic resilience, and this shows how resilient the economy is,” he said on Bernama TV’s The Nation programme titled “West Asia Conflict: How Malaysia Shields Its Economy”, hosted by Jessy Chahal.  

On inflation risks stemming from higher oil prices, Shan said Malaysia has managed to contain pass-through effects through a combination of prudent monetary policy and currency strength.

"Currency appreciation takes care of inflation. Malaysia has used monetary policy and the currency in a very strategic manner so that price stability stays," he said, adding that inflation in ASEAN remains relatively contained.

On growth outlook, he said Juwai IQI expects Malaysia’s gross domestic product (GDP) to expand between 4.5 per cent and 5.5 per cent in 2026, driven primarily by strong domestic consumption and investment activities.

Meanwhile, Shan said fears of an economic collapse stemming from the Straits of Hormuz impasse are overstated. Some of the stories being shared are not credible.

"Malaysia has maintained macroeconomic stability, and this is its hallmark over the last five to 10 years.

"Malaysia will continue to survive,” he said.

Saeed also identified commodities, real estate and information and communication technology (ICT), particularly in the chip segment, as key sectors underpinning Malaysia’s growth trajectory, supported by consistent policy direction and investment momentum.

He said consistency and stability will be key drivers to sustain Malaysia’s growth.

Juwai IQI is an international real estate technology group.

-- BERNAMA