DBS Group raises Malaysia's 2026 GDP forecast to 5.2%, optimistic about domestic demand and AI export resilience

(1) DBS Group economist Chua Han Teng pointed out in a report that supported by sustained strong domestic demand and improved export prospects driven by positive global AI developments, Malaysia's economic growth is expected to remain resilient over the next few quarters, and the 2026 GDP growth forecast has been raised from the previous 4.7% to 5.2%. (2) He expects expansion to slow in the second half due to high base effects, but Malaysia's position as a net exporter of oil and natural gas helps cushion external shocks from tensions in the Middle East. (3) DBS Group also expects that, despite ongoing geopolitical risks, strong bond inflows and stable government bond yields will continue, reflecting investors' continuing confidence in Malaysia's economic fundamentals.