Standard Chartered: Malaysia’s Robust Growth to Bolster Ringgit

Standard Chartered economists Edward Lee and Jonathan Koh highlight Malaysia’s robust economic performance, noting a 5.2% expansion in 2025 following 5.1% growth in 2024. This momentum is largely attributed to strong domestic sentiment, AI-driven investments, and supportive policies. While the bank forecasts a slight moderation to 4.5% GDP growth in 2026 due to potential tariff impacts—a figure slightly more optimistic than official government projections—upside risks remain thanks to sustained AI demand. regarding monetary policy, despite strong fourth-quarter performance raising speculation about unwinding the July 2025 rate cut, Standard Chartered expects Bank Negara Malaysia (BNM) to maintain current rates, citing benign inflation and lingering global uncertainties.

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