WEF: Growth to remain resilient at 4.7% in 2026

By the Editorial Team · Wednesday, September 23, 2026

Malaysia’s economy is projected to grow by 4.7% in 2026, largely supported by technology exports, investment, and strong domestic demand, according to the World Economic Forum’s Chief Economists’ Outlook. This growth outlook reflects broader regional resilience in Southeast Asia, where most economists expect steady or improving economic activity alongside stabilizing inflation and labor market conditions.

Malaysia’s economy is expected to grow by 4.7% in 2026, driven by technology-related exports, investment, and strong domestic demand, according to the World Economic Forum’s (WEF) latest Chief Economists’ Outlook released in September 2026. The report highlights that the overall growth outlook for Southeast Asia remains broadly resilient, as 97% of chief economists surveyed anticipate that economic activity in the region will either moderate or strengthen over the next year.

Among those surveyed, 73% expect growth to be stronger or very strong, a rise from 69% in the previous survey conducted in May. However, growth projections vary across countries within the region. Vietnam is forecast to grow at 7.5% in 2026, while Thailand is expected to see a more modest expansion of 1.9%. Both countries’ growth rates are supported to different extents by technology exports, investment flows, and domestic consumption.

Labour market conditions also appear stable, with 79% of economists predicting unemployment rates will remain steady, and 14% foreseeing a decline. This stability in employment conditions is seen as a positive factor underpinning demand in the region.

The report notes that manufacturing activity, export resilience, ongoing investment, and consistent domestic demand continue to provide a foundation for growth across developing Southeast Asian economies. These elements collectively contribute to the region’s economic prospects despite global uncertainties.

Inflation expectations have shown signs of improvement compared to earlier in the year. Currently, 53% of the surveyed economists predict moderate inflation over the next 12 months, while 41% expect high inflation. This represents a shift from May’s outlook, where a combined 54% had anticipated high or very high inflation, indicating some easing of inflationary pressures for the region.

Overall, the WEF’s outlook underscores a cautiously optimistic scenario for Malaysia and its Southeast Asian neighbours, reflecting balanced risks amidst ongoing global economic challenges.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.