The government reaffirms its 2026 GDP growth forecast of 4.0-4.5%, citing strong 2025 performance and resilient economic fundamentals.
PUTRAJAYA: The government has maintained its economic growth projection for 2026 at 4.0 to 4.5%. Economy Minister Akmal Nasrullah Mohd Nasir said the target was upheld after considering various global risks and challenges.
He stated that Bank Negara Malaysia will continuously review the target based on prevailing economic conditions.
“This matter will always be reviewed by Bank Negara Malaysia and BNM will ultimately determine whether this target remains up or down,” Akmal Nasrullah told reporters. He indicated that current signs support maintaining the existing forecast despite geopolitical and external uncertainties.
The decision follows a robust economic performance in 2025, which demonstrated national resilience. Malaysia’s Gross Domestic Product grew by 5.2% for the full year 2025.
Growth momentum strengthened significantly in the final quarter, with GDP expanding by 6.3%.
The labour market also showed marked improvement alongside the economic expansion. The unemployment rate fell to 2.9% in Q4 2025, its lowest level in eleven years.
Inflationary pressures were increasingly contained throughout the year. The inflation rate moderated to 1.4% in 2025, down from 1.8% recorded in 2024.
Household well-being metrics showed positive trends according to official survey data. The 2024 Household Income and Expenditure Survey indicated the national incidence of absolute poverty decreased to 5.1%, affecting approximately 416,000 households.
Extreme poverty shrank further to just 0.09%, involving around 7,200 households.
Akmal Nasrullah said these indicators reflect the positive results of ongoing government efforts. He emphasised that continuous work to strengthen the economy and improve public welfare is yielding outcomes despite persistent global challenges.
The minister was speaking after launching the 13th Malaysia Plan implementation monitoring system, known as MyRMK.
