KUALA LUMPUR (Sept 22): Malaysia’s economy is projected to grow 4.7% in 2026, supported by technology-related exports and investment as well as robust domestic demand, according to the World Economic Forum (WEF).

In its latest Chief Economists’ Outlook — September 2026, the WEF said the growth outlook for Southeast Asia remains broadly resilient, with 97% of chief economists surveyed expecting growth in the region to moderate or strengthen over the next 12 months.

Of these, 73% anticipate stronger or very strong growth, compared with 69% who expected moderate or stronger growth in May.

Country-level forecasts remain differentiated, with Vietnam’s growth projected at 7.5% and Thailand’s at 1.9% in 2026, supported to varying degrees by technology-related exports and investment, and robust domestic demand.

Labour market expectations are also favourable, with 79% of respondents expecting unemployment to remain unchanged and 14% anticipating a decrease.

More broadly, manufacturing, resilient exports and investment, and steady domestic demand continue to support growth across developing Southeast Asia.

Meanwhile, inflation expectations have also improved since May.

Of the chief economists surveyed, 53% expect moderate inflation and 41% see high inflation over the next 12 months, compared with 54% expecting high or very high inflation in May.

Inflation for developing Southeast Asia is nevertheless projected at 3.9% in 2026, up from a 3.2% forecast earlier in the year, reflecting higher global energy and food prices as well as exchange-rate pressures that have raised import costs across the subregion.

At the same time, strong technology demand, firm household spending and resilient investment are helping to support regional activity, although renewed disruption could again raise energy and shipping costs.

The survey featured in this edition was conducted from Aug 4 to 20 this year.

Uploaded by Tham Yek Lee