MALAYSIA’S economy is projected to grow between 4.5 and 5.0 per cent in 2026, reflecting strengthening domestic demand and continued investment momentum, Prime Minister Datuk Seri Anwar Ibrahim said, noting that these projections are consistent with expectations from the Finance Ministry and international institutions.
Reading a speech at the Affin 50th anniversary gala and Chinese New Year dinner, Finance Minister II Datuk Seri Amir Hamzah Azizan conveyed Anwar’s remarks, which highlighted Malaysia’s resilient economic outlook despite ongoing global uncertainties.
“Based on official projections earlier, Malaysia’s economy was expected to expand between 4.0 and 4.5 per cent in 2026, supported by steady domestic demand and sustained investment activity,” Anwar said.
The Prime Minister added that inflation is expected to remain moderate and well contained, in line with the objectives of monetary policy.
“Bank Negara Malaysia is also expected to maintain a policy stance that supports growth while safeguarding price stability and the soundness of the financial system,” he said. “Nevertheless, we must remain vigilant. Geopolitical tensions, shifts in global trade policies and volatility in financial markets call for disciplined risk management and strong governance.”
Emphasising fiscal responsibility, Anwar stressed that the government will continue to maintain financial discipline while implementing structural reforms in a measured and prudent manner.
“Structural reforms are being implemented in a phased and prudent manner, taking into account market conditions, the welfare of the rakyat and the capacity of financial institutions to support this transition. This balanced approach is essential to sustaining investor confidence and strengthening Malaysia’s economic resilience,” he said.
Anwar also underscored the critical role of the banking sector in supporting growth and stability. “Banks are not only providers of financing but they are stabilisers of the financial system, facilitators of investment and anchors of market confidence.
“Within this framework, institutions such as Affin Group serve an important role as financial intermediaries. They support system stability, expand productive financing and ensure that credit continues to flow to the real economy,” he said.
The Prime Minister highlighted the need for efficiency and adaptability in the current market environment, noting that digitalisation and artificial intelligence are key tools to boost productivity, enhance financial inclusion and strengthen Malaysia’s competitiveness.
“These efforts must be supported by strong risk controls, cybersecurity safeguards and robust data protection,” he said, praising Affin Group’s recent digital transformation initiatives as aligned with national priorities.
Anwar concluded that the combination of prudent fiscal management, resilient domestic demand, a stable banking sector, and technological innovation will be crucial to sustaining Malaysia’s economic growth in the coming year. - February 8, 2026
