Moody's Ratings released a report today projecting that Malaysia's economy will grow between 4% and 4.5% throughout 2026. This growth is expected to be primarily driven by robust domestic demand, resilient household consumption, and sustained public and private investments. The rating agency's target aligns closely with the Ministry of Finance's official estimates, signaling a stable economic outlook for the year. 

The report highlights that domestic consumption will be supported by a low unemployment rate and rising real wages, partly due to government policy support. Inflation is expected to remain manageable, averaging around 1.8% in 2026. On the investment front, multi-year projects in transportation, energy, and civil engineering are expected to maintain momentum, while foreign capital continues to flow into the electrical, electronics, and data center sectors. 

Economists are also looking forward to the official announcement of the 4Q 2025 GDP results by Bank Negara Malaysia this Friday. Early estimates suggest a growth of 5.7% for the final quarter of last year, which would mean the full-year 2025 growth likely exceeded official projections at 4.9%. This strong performance at the end of 2025 provides a "strong underlying momentum" as the country enters the current fiscal year.