IMF forecasts 5.2% GDP growth for Malaysia in 2026

The International Monetary Fund (IMF) has projected that Malaysia's gross domestic product (GDP) will expand by 5.2% in 2026 and 4.7% in 2027, despite regional economic uncertainties. The October 2026 Regional Economic Outlook for Asia and the Pacific, titled "Resilient Amid Uncertainty: Can It Be Sustained?", emphasizes technology-related exports and substantial investments in data centers as key drivers of growth in the region.

Malaysia and Singapore have seen an increase in exports of technology products, while significant investments in data centers across China, India, Japan, Indonesia, and Malaysia have also contributed to growth. In Malaysia, operational data center capacity currently stands at over 1,000 megawatts, with another 1,500 megawatts under construction, according to the report.

The composition of services exports in Malaysia is roughly 30% modern services and the remaining 70% traditional services. However, the IMF observed that many services exports in the region are predominantly oriented towards global markets rather than regional markets, with only around 14% of modern services exports being directed towards countries within the Asia-Pacific region.