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MALAYSIA’S economy is poised to sustain its growth momentum in 2026, according to Affin Bank Bhd, with gross domestic product (GDP) expected to expand by 4.3 per cent following an anticipated 4.6 per cent growth in 2025.
Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali highlighted that global geopolitical developments, including the ongoing crisis in Venezuela, have reinforced the importance of energy security, with oil prices expected to remain elevated above US$56 per barrel.
“Malaysia’s economy is expected to sustain its growth momentum in 2026, supported by strong foreign direct investments, improving fiscal discipline and resilient domestic demand,” he said at the Affin Bank Group’s Chinese New Year Dinner.
On the currency front, Wan Razly said the bank remains optimistic on the ringgit, forecasting it to appreciate to RM4.05 against the US dollar in 2026 from RM4.06 in 2025.
“The outlook is supported by strong foreign inflows and sustained investor confidence,” he added, noting that the ringgit emerged as the best-performing currency in Southeast Asia over the past year, reflecting the country’s solid economic fundamentals.
Affin anticipates 2026 to be a defining year for both the ringgit and the broader economy, driven by positive foreign direct investment sentiment and government measures aimed at reducing the budget deficit, including expected cuts to fuel subsidies.
The bank also projected the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index to trend higher, reaching 1,780 points in 2026, up from 1,680 points in 2025, representing a six per cent increase.
“The index is anticipated to outperform the MSCI ex-Japan Index, supported by favourable macroeconomic conditions and capital inflows,” Wan Razly said.
He emphasised that Affin Bank’s strategy continues to be anchored on three core pillars: unrivalled customer service, digital leadership, and responsible banking with impact.
Under its customer service pillar, the bank announced the acquisition of Affin PHEIM Asset Management in November 2025, which will strengthen its presence in the fund management sector. The asset management business is expected to launch in the second quarter of 2026.
Affin has also maintained strong financial credentials, with Moody’s reaffirming the group’s international credit rating at ‘A3’ while upgrading its standalone rating to ‘Baa2’, reflecting solid liquidity and funding capabilities.
The bank continues to expand its physical footprint, particularly in Penang, where it operates 13 branches, including three newly opened in Air Itam, Bukit Mertajam, and Jelutong in 2025.
Branch expansion in the first half of 2026 is planned to further enhance customer accessibility, supporting loan growth and demonstrating strong community banking demand.
Digital innovation remains a focus, with the launch of ATMOZFR, a lifestyle application integrating concerts, live events, travel, dining, and premium banking services such as Affin Diventium and Affin Invikta.
In sustainability, Affin reported that its sustainable financing portfolio accounted for 12.4 per cent of total loans by the third quarter of 2025, progressing toward a target of 25 per cent by 2028.
Wan Razly highlighted Affin’s environmental initiatives, noting the group’s collaboration with Landasan Lumayan Sdn Bhd and The Ocean Cleanup initiative to restore the Klang River using Interceptor technology.
“Following the celebration of our 50th anniversary, Affin Group is entering the next phase of growth with renewed purpose, leveraging strong foundations to accelerate progress, deepen stakeholder trust and seize new opportunities as we look ahead to 2026 and beyond,” he said, signalling a confident outlook for Malaysia’s financial sector and broader economy. - January 9, 2025
