Summary
- ADB raised Malaysia’s 2026 growth forecast to 4.9%.
- Growth of 4.7% is projected for 2027.
- Semiconductors, data centres and infrastructure will support expansion.
KUALA LUMPUR, October 1 — The Asian Development Bank raised Malaysia’s 2026 economic growth forecast to 4.9%, from 4.6% previously.
ADB also upgraded its 2027 forecast to 4.7% from 4.5%, supported by the semiconductor upcycle and data centre investment.
Construction and investment are expected to remain strong, supported by data centre developments and infrastructure projects including Penang’s LRT.
However, ADB expects growth to moderate amid external uncertainty, higher food and energy costs and potential El Niño disruptions, while inflation is projected at 2% in both years.
