Bank of America: Malaysia's GDP growth is expected to remain stable in 2026.

Bank of America economists Kai Wei Ang and Rahul Bajoria said in a report that Malaysia's GDP growth rate in 2026 could be 4.2%, supported by stable investment, a stronger tourism industry, and robust private consumption growth. They pointed out that with the parliament scheduled to be dissolved by December 2027 for elections to be held by February 2028, political developments are expected to become increasingly important in 2026. While some market participants believe that the strong growth prospects provide a rationale for reducing monetary accommodation policies, these economists believe that there are no clear factors triggering a rate hike this year. They stated that inflation pressures remain manageable, thanks to the strengthening ringgit and the government's continued focus on addressing cost of living issues.