0825 GMT - Malaysia's economic outlook will likely remain upbeat, supported by strong growth momentum, resilient trade, robust investment inflows and steady policy settings, HSBC economists Yun Liu and Madhurima Nag say in a note. After recording around 5% GDP growth in 2024 and 2025, growth is expected to come in at 4.5% in 2026, at the upper end of the government's forecast range, they say. Trade may continue to benefit from strong electronics and artificial-intelligence-driven chip demand, but potential U.S. tariffs on semiconductors may pose downside risks, they reckon. Strong tourism and foreign direct investment should provide additional tailwinds, they add. Fiscal consolidation efforts and a stable monetary policy stance further underpin confidence, supporting a constructive outlook despite lingering global uncertainties, HSBC adds. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
January 29, 2026 03:25 ET (08:25 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments