THE nation’s economic fundamentals remain resilient despite growing global uncertainties, with the government stepping up measures to safeguard national supply chains, secure essential resources and strengthen industrial competitiveness.
The National Economic Action Council (MTEN), chaired by Prime Minister Datuk Seri Anwar Ibrahim on Monday, reviewed three key areas with direct implications for Malaysians and the wider economy — food security, domestic and border security, and the resilience of the manufacturing sector.
Economy Minister Akmal Nasrullah Mohd Nasir said the discussions were held amid heightened geopolitical tensions, particularly renewed instability in West Asia following fresh exchanges between the United States and Iran since July 8.
The situation intensified after Iran announced the closure of the Strait of Hormuz, one of the world’s most critical energy shipping routes, although some commercial traffic was reportedly continuing.
The government warned that prolonged uncertainty could place further pressure on global crude oil prices, shipping costs, delivery timelines and raw material prices, potentially affecting businesses, consumer prices and domestic supply chains.
However, Malaysia remains confident that its economy is well-positioned to withstand external pressures, supported by strong domestic demand, manufacturing activity, exports and continued investment flows.
Speaking during a Global Supply Crisis Briefing at Parliament on Monday, Akmal said Malaysia recorded gross domestic product (GDP) growth of 5.4 per cent in the first quarter of 2026, driven by domestic consumption, services sector expansion, manufacturing performance and resilient electrical and electronics exports.
Inflation remained manageable, rising slightly to 2.0 per cent in May 2026 from 1.9 per cent in April, mainly due to increases in food and beverage prices.
Trade performance also continued to support economic activity, with Malaysia’s total trade between January and May 2026 expanding 18.3 per cent to almost RM1.5 trillion.
Exports surged 24.3 per cent to RM793.8 billion, while imports increased 11.8 per cent to RM661.1 billion, resulting in a trade surplus of RM132.8 billion — the strongest January-to-May performance on record.
Malaysia’s economic momentum was further reflected in key indicators, with the Leading Index rising 1.3 per cent in April, while manufacturing output expanded 6.4 per cent between January and May, largely supported by electrical and electronics production.
The Manufacturing Purchasing Managers’ Index (PMI) also improved to 50.7 in June, signalling renewed expansion in the manufacturing sector.
Akmal added that the ringgit strengthened by 8.3 per cent against the US dollar as of July 3 compared with the end of 2025, while Bank Negara Malaysia maintained the Overnight Policy Rate at 2.75 per cent.
“The government remains confident of achieving its 2026 economic growth target of between 4.0 and 5.0 per cent, supported by stronger private investment, exports and domestic economic activity,” he said.
Akmal acknowledged that global risks remained unpredictable, particularly as tensions surrounding the Strait of Hormuz continued to create uncertainty in energy and logistics markets.
Nevertheless, he stressed that future policy decisions would continue to be guided by data, industry feedback and practical measures aimed at protecting Malaysians while reinforcing the country’s long-term economic resilience. - July 13, 2026
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