ADB raises Malaysia’s 2026, 2027 growth forecasts to 4.9pc, 4.7pc
KUALA LUMPUR, Sept 23 — The Asian Development Bank (ADB) has raised its 2026 and 2027 economic growth forecasts fo...
The Asian Development Bank (ADB) has revised its growth forecasts for Malaysia's 2026 and 2027 economies. The bank is now predicting a growth rate of 4.9% for 2026 and 4.7% for 2027, both an increase from previous estimates. This upward revision is attributed to the semiconductor upcycle, data center investments, and domestic spending resilience.
However, the bank anticipates a slight moderation in growth during the second half of 2026 and in 2027 due to external factors such as supply chain disruptions and rising international prices. Despite these challenges, domestic spending is expected to remain strong, supported by initiatives like Visit Malaysia 2026 and the upcoming Formula One event in Sepang.
Additionally, fuel subsidies and cash transfers to low-income households are expected to help sustain household consumption. The construction and investment sectors are also poised for growth, particularly with the second wave of data center projects and major infrastructure developments like the Penang light rail transit. Manufacturing and external trade are expected to benefit from increased use of artificial intelligence and a projected rise in global semiconductor sales to $1.5 trillion by 2026.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
