JP Morgan has upgraded its 2026 gross domestic product growth forecast for Malaysia to 5.3% from 5.0%, citing stronger-than-expected economic performance in the second quarter.
The bank also indicated it expects Bank Negara Malaysia to raise the overnight policy rate (OPR) in the fourth quarter, signaling a shift toward tighter monetary conditions as growth momentum accelerates.
2% from 4.4%, while Kenanga Research also upgraded its growth projections, reflecting broad consensus that Malaysia’s economy is outperforming earlier expectations.
The forecast revision follows a pattern of upward adjustments from other market analysts.
OCBC Research recently lifted its 2026 GDP estimate to 5.2% from 4.4%, while Kenanga Research also upgraded its growth projections, reflecting broad consensus that Malaysia’s economy is outperforming earlier expectations.
The Malaysian ringgit opened higher against the US dollar on Wednesday, buoyed by anticipation surrounding the release of the country’s second-quarter GDP advance estimate, which is scheduled for publication in the coming days.
Malaysia’s economic expansion had been projected to decelerate in the second quarter, with economists forecasting GDP growth to settle between 4.8% and 5.0%.