KUALA LUMPUR (Feb 5): Prime Minister Datuk Seri Anwar Ibrahim said on Thursday that the government will sustain reforms to translate renewed economic confidence into tangible benefits.

Anwar, who is also the country's finance minister, said recent strong economic growth, low inflation and strengthening of the ringgit are encouraging signs, reflecting disciplined fiscal management as well as seriousness in governance.

“Markets may respond to data, but the rakyat judges by experience,” he said. “Growth must be felt in homes, in workplaces and in the cost of living faced by ordinary families.”

Malaysia’s economy expanded 4.9% in 2025, official flash estimates released last month showed, faster than the government’s projection of up to 4.8%. Inflation, meanwhile, decelerated to just 1.4% last year.

The ringgit remains the best performing major Asian currencies in the first weeks of 2026, appreciating more than 3% against the US dollar. The gain since the start of the year adds to the more than 10% gain against the US dollar in 2025.

“External factors do play a role, but currencies ultimately reflect trust in institutions, in policy direction and trust that a country is governed with discipline and purpose,” Anwar said in his keynote address at the Malaysia Economic Forum 2026 on Thursday.

Apart from enforcement against corruption, he also said institutional reforms will continue “without pause and without apology” to strengthen institutions, rules and systems to outlast individuals and political cycles.

The efforts are already bearing fruit, Anwar said, pointing to their investment decisions and reassessment of Malaysia's economic risk. The challenge, however, is translating the renewed confidence into better lives amid cost of living pressures, he noted.

“This is why our economic strategy combines macroeconomic discipline with targeted support, to protect purchasing power and ensure that growth improves real living standards,” he added.