KUALA LUMPUR (Bernama-VNA): Malaysia is poised to become the second-fastest-growing economy in the Association of South-East Asian Nations (Asean) after Vietnam, data showed.
Malaysia’s stronger-than-expected performance over the first nine months has laid a firm foundation for the years ahead, giving policymakers and investors greater visibility for the remainder of 2025 and into 2026, Vietnam news agency (VNA) reported analysts said.
HSBC Global Investment Research (HSBC Research) is the latest to turn more optimistic, raising its 2025 gross domestic product (GDP) forecast to 5 per cent from the previous estimate of 4.2 per cent.
Malaysia’s growth outlook is being bolstered not only by domestic resilience but also by the government’s adoption of a flexible diplomatic strategy.
Its proactive diplomacy, particularly at the 47th Asean Summit, reflects an ability to maintain neutrality while engaging major trading partners, helping to reduce external uncertainties.
HSBC noted that, alongside Indonesia, Malaysia is likely to be the second-fastest-growing economy in Asean, behind Vietnam.
Maybank Investment Bank Bhd (Maybank IB) echoed the brighter outlook, revising its 2025 GDP forecast to 4.7 per cent from 4.2 per cent and lifting its 2026 projection to 4.5 per cent from 4.1 per cent.
Resilient domestic demand remains the anchor of Malaysia’s growth narrative, even as net external demand continues to fluctuate, it said.
Standard Chartered Global Research also upgraded its 2025 GDP estimate to 4.7 per cent from 4.2 per cent, following Malaysia’s solid nine-month expansion of 4.7 per cent this year.
However, it trimmed its 2026 outlook from 5 per cent to 4.5 per cent, citing a likely slowdown in external demand compared with this year.
Malaysia’s central bank is expected to keep its overnight policy rate (OPR) unchanged at 2.75 per cent. As a result, consumption and investment activity are expected to continue supporting economic growth in the coming quarters, VNA reported.
CIMB Securities Sdn Bhd raised its 2025 forecast to 4.5 per cent from 4.3 per cent, while growth is projected to ease to 4.1 per cent in 2026.
However, with Malaysia’s major trading partners expected to expand at a slower pace, external demand is likely to soften in 2026, it added. – Bernama