Malaysian economy to stay resilient in 2026 on FDI, robust infrastructure investment- HSBC

TheStar Mon, Jan 19, 2026 01:25pm - 3 weeks View Original


KUALA LUMPUR: Malaysia's economy is expected to remain resilient this year, driven by the ongoing foreign direct investment (FDI) and robust infrastructure investment, said HSBC chief Asia economist Frederic Neumann.

He said the nation's gross domestic product (GDP) grew by 4.9 per cent for 2025, close to the bank’s expectation of around 5.0 per cent, underscoring the economy’s underlying strength despite emerging global headwinds.

"We see Malaysian growth this year at 4.5 per cent, down slightly from five-ish per cent last year, but it's still a very resilient outcome for Malaysia and that partly is also driven by the ongoing investment in Malaysia," he said during a virtual media briefing on HSBC Asian Outlook 2026 today.

Neumann noted that continued infrastructure development and steady FDI, particularly in electronics, semiconductors and data centres, are expanding Malaysia’s productive capacity and underpinning medium-term growth prospects.

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