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MALAYSIA’S economy is expected to maintain stable growth of 4% in 2026, driven by a strong domestic market and strategic initiatives outlined in the 13th Malaysia Plan (RMK13), according to economic analysts.
Malaysian Institute of Economic Research (MIER) Senior Non-Resident Fellow Dr Khalid Abdul Hamid said policy measures under RMK13, which focus on innovation, productivity enhancements, and structural reforms, are likely to stabilise growth while boosting key sectors of the economy.
“The outlook is supported by anticipated improvements in economic activity next year, as well as recovery trends in several major economic components,” Dr Khalid said after launching the National Economic Outlook Conference.
He highlighted the importance of Malaysia’s diverse economic structure, noting that the services sector remains the largest contributor, accounting for approximately 60 to 65 percent of the economy, followed by manufacturing and other sectors such as construction and mining.
“For mining, there were some disruptions this year, but performance is expected to improve next year. So far, we have not seen major issues, apart from uncertainties in the global economy driven by geopolitical factors,” he added.
Dr Khalid also noted that Malaysia’s strong economic fundamentals and diverse export markets help buffer the nation against global volatility, supporting prospects for sustained, stable growth over the long term.
The Ministry of Finance had previously projected Malaysia’s GDP growth for 2026 to fall within a range of 4 to 4.5 percent, in line with these expert assessments. - November 30, 2025
