IPPFA Upgrades Malaysia’s GDP Growth Projection to 4.6 Per Cent for 2026
Domestic Strength and Policy Stability Underpin Economic Outlook
PETALING JAYA: IPP Financial Advisers (IPPFA) has raised its forecast for Malaysia’s gross domestic product (GDP) growth in 2026 to 4.6 per cent, supported by strong domestic demand and a stable macroeconomic policy environment.
The upward revision was announced in the firm’s latest quarterly outlook, following official data indicating that Malaysia’s economic performance at the end of 2025 was driven largely by sustainable internal factors.
IPPFA noted that the country’s growth momentum is increasingly anchored in domestic drivers such as consumer spending, government expenditure, and private investment, rather than relying heavily on external demand.
Strong Fundamentals Support Expansion
IPPFA Director of Investment Strategy and Chief Economist Mohd Sedek Jantan said Malaysia’s economic outlook reflects broad-based resilience across key sectors.
He added that stable labour market conditions, consistent economic policies, and sustained investor confidence are reinforcing the country’s growth prospects.
These developments suggest that Malaysia’s economy is on a firmer and more sustainable footing.
Inflation to Remain Moderate, Interest Rates Stable
IPPFA expects inflation to remain manageable at around 2.2 per cent this year, despite ongoing cost pressures in certain areas.
The firm said government fiscal measures have played a key role in maintaining price stability.
Meanwhile, Bank Negara Malaysia is expected to keep the Overnight Policy Rate unchanged at 2.75 per cent throughout 2026.
Equity Market and Ringgit Outlook Positive
IPPFA also lifted its year-end target for the FTSE Bursa Malaysia KLCI to 1,820 points from 1,740 previously.
Domestic-oriented sectors, particularly banking and consumer-related industries, are expected to drive market performance.
The ringgit is forecast to remain stable and could strengthen to RM3.75 against the US dollar, depending on global economic conditions and monetary policy trends.
IPPFA said Malaysia’s strong domestic foundation positions the economy well to navigate global uncertainties while sustaining growth momentum.
-wilayah.com.my
