M’sia among 6 Apac economies set to grow faster than China in 2026
Its growth is supported by its integration into the artificial intelligence supply chain, says Moody’s Analytics.
Malaysia, Taiwan, Singapore, India, Vietnam, and Indonesia are projected to experience faster real GDP growth than China in 2026, according to Moody's Analytics. The report, titled "Asia-Pacific Outlook: RAMpocalypse Now," predicts that these economies will grow at a faster pace due to their integration into the artificial intelligence supply chain.
Taiwan, South Korea, Singapore, and Malaysia are expected to outpace China in 2026, with all seven countries surpassing China's growth rates. The report attributes this to strong demand for semiconductors and other technology products, which have boosted exports from Taiwan, South Korea, and several Southeast Asian nations. However, overall Asia-Pacific economic growth is expected to moderate to 4.3% in 2026 from 4.4% in 2025, before further slowing to 3.7% in 2027.
Higher prices and tighter monetary policy, partly due to the conflict in West Asia, are anticipated to dampen household demand and investment in traditional manufacturing and services. Despite central banks in several regions tightening monetary policy, Malaysia and Taiwan have maintained unchanged interest rates, though they have room to raise rates if needed.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
