{
  "id": 17173344,
  "title": "HSBC raises Malaysia's GDP forecast to 5.5pct, highest since 2022",
  "url": "https://urgent.news/2026/10/30/hsbc-raises-malaysias-gdp-forecast-to-5-5pct-highest-since-2022",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-30T04:04:52.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/10/1566794/hsbc-raises-malaysias-gdp-forecast-55pct-highest-2022"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: HSBC has upgraded its forecast for Malaysia's GDP growth to 5.5% in 2026, the strongest since 2022. The bank's research division cites strong domestic demand and a surge in electronics exports as key factors behind the improvement. If realized, the growth would mark the fastest annual expansion since 2022, when the economy rebounded by 8.7% following the Covid-19 pandemic. It would also be the strongest growth since 2017, when the economy expanded by about 5.9%. HSBC's upgrade follows Malaysia's better-than-expected third-quarter GDP growth estimate of 5.3%, and its fourth-quarter growth forecast to 5.3%, indicating continued economic momentum through the end of the year. Malaysia's AI-driven electronics exports grew at a record 60% year-on-year, while the country's status as a net energy exporter provides an advantage amid elevated commodity prices. Private consumption and investment remain key drivers of growth, supported by low inflation, government subsidies, and continued infrastructure development. Consumers are better positioned to spend than their regional peers, with Malaysia recording the lowest inflation rate in the region. While investment growth has moderated to single digits, infrastructure projects continue, though some are nearing operational phase. Despite the stronger growth outlook, HSBC expects Bank Negara Malaysia to keep the overnight policy rate at 2.75% at its November 5 monetary policy meeting. The bank expects Malaysia's economic growth to moderate to 5% in 2027 and 4.7% in 2028.",
  "summary": "KUALA LUMPUR: Malaysia's economy could record its strongest annual growth in four years after HSBC raised its 2026 gross domestic product (GDP) forecast to 5.5 per cent from 5.2 per cent.",
  "key_points": [
    "HSBC raises Malaysia's GDP forecast to 5.5% in 2026, highest since 2022",
    "Strong domestic demand and surge in electronics exports cited as key factors",
    "Faster growth would mark the fastest annual expansion since 2022"
  ],
  "editors_take": "Rising electronics exports and resilient domestic demand signal a period of renewed economic momentum that positions Malaysia as a stronger performer compared to its regional neighbors.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}