Malaysia keeps 2026 economic growth target at 4-4.5%, balancing inflation risks from Middle East conflict with domestic spending and investment
JOHOR BAHRU: The government is maintaining its economic growth target for 2026 at 4.0 to 4.5 percent despite global uncertainty stemming from the Middle East conflict.
Minister of Economy Akmal Nasrullah Mohd Nasir said the projection accounts for current risks including geopolitical tensions and global supply chain disruptions.
He stated that any changes to the growth target would be announced by Bank Negara Malaysia. Akmal emphasised the need to balance protecting public welfare with maintaining economic momentum.
“The biggest pressure we face now relates to oil supply and inflation issues, but a balance must be struck to ensure economic growth is not affected,” he told reporters after attending a Hari Raya open house event here.
He said sustaining growth requires maintaining domestic spending as needed, continuing to drive private investment, and ensuring government development projects proceed as planned.
The government has activated the National Economic Action Council (MTEN), which now meets weekly to monitor current developments based on the latest data.
The council examines appropriate measures to address the impact of the conflict. Outcomes from MTEN discussions will be brought to the Cabinet for decision-making.
The Ministry of Economy is also engaging with various parties, including small and medium enterprises (SMEs), to gather feedback on current challenges and steps to alleviate economic pressure.
The government is paying attention to domestic supply guarantees, including energy, with necessary measures being taken to ensure supply continuity in the medium term.
Previously, the government maintained its 2026 economic growth projection at 4.0 to 4.5 percent despite facing global uncertainty, with reassessments to be made from time to time based on the latest developments.