Overview
- Bank Negara Malaysia, in its annual review released Tuesday, raised its 2026 GDP forecast to a 4%–5% range from 4%–4.5%.
- While warning that the Middle East war has driven up oil prices and could strain growth and prices, the bank said net energy exports along with strong tech exports and tourism should cushion the blow.
- Headline inflation is projected at 1.5% to 2.5% this year, with core inflation at 1.8% to 2.3%, up from last year’s 1.4% headline reading.
- The government now expects to spend about 4 billion ringgit a month on fuel support to hold the RON95 petrol price at RM1.99 per litre, with a tighter 200‑litre monthly quota per person.
- The central bank kept its key interest rate at 2.75% earlier this month and said it stands ready to step in to keep markets orderly after the economy grew 5.2% in 2025.