No Revision To 2026 GDP Growth Forecast Of 5.0 Pct For Now - BNM

KUALA LUMPUR, Aug 14 (Bernama) -- Bank Negara Malaysia (BNM) said there is no need to revise Malaysia’s 2026 GDP growth forecast at this juncture, remaining confident that growth will likely settle around five per cent. Governor Datuk Seri Abdul Rasheed Ghaffour stated that any revisions would typically occur during the Budget announcement. He noted that the last three quarters have shown growth above expectations. The main drivers of growth, including consumption, investment, exports, tourism, and other factors, remain strong and will continue to support the economy in the second half. Malaysia's economy expanded by 6.0 per cent in the second quarter (2Q) 2026, surpassing the Department of Statistics Malaysia’s advance estimate of 5.8 per cent. Abdul Rasheed emphasized that domestic demand is the primary driver, with strong external sector support, particularly in the previous quarter. Both electrical and electronics (E&E) and non-E&E exports have contributed to diversified growth. The information and communications technology services sector has also seen an increase. However, global economic uncertainties and geopolitical conflicts may lead to adjustments in growth drivers in the future. Household consumption remains resilient at 4.8 per cent in 2Q 2026, supported by income growth, savings, and government policy. Borrowing is noted as a minor factor in direct consumption. The impact of El Niño on the economy will be felt with a delay, primarily affecting the agricultural sector. Businesses and households are advised to prepare for potential worsening conditions due to El Niño.