ADB Raises Malaysia’s Economic Growth Forecasts for 2026 and 2027

The Asian Development Bank (ADB) has raised Malaysia’s economic growth forecasts for 2026 and 2027 to 4.9 per cent and 4.7 per cent respectively.

The latest projections are higher than its July forecasts of 4.6 per cent for 2026 and 4.5 per cent for 2027, reflecting stronger expectations for Malaysia’s economic performance.

Semiconductor Upswing and Data Centres Lift Malaysia’s Growth Outlook

ADB said the semiconductor upcycle is supporting growth, while data-centre investments are strengthening consumption and construction activity.

Manufacturing and external trade are also expected to benefit from developments involving artificial intelligence. Global semiconductor sales are projected to reach US$1.5 trillion in 2026, compared with US$795.6 billion in 2025. 

However, ADB expects growth to moderate during the second half of 2026 and into 2027. Supply-chain disruptions and higher international prices linked to the West Asia conflict could raise domestic costs, while food and energy pressures may constrain household spending.

Inflation is projected to remain at 2 per cent through the rest of 2026 and throughout 2027.