Hong Leong Investment Bank lowers Malaysia's economic growth forecast for 2026

Golden Ten Data reported on April 3 that according to Hong Leong Investment Bank's report, Malaysia’s economy may come under pressure due to temporary energy supply disruptions caused by the Iran conflict, leading to a downward revision of its 2026 GDP growth forecast from 4.7% to 4.5%. Although Malaysian vessels have recently been permitted to pass through the Strait of Hormuz free of charge, analysts believe that crude oil supply risks cannot be completely ignored. Nevertheless, strong electronics exports and sustained consumer demand are expected to support growth. Due to rising commodity costs and adverse weather impacts, RON97 fuel, unsubsidized diesel, electricity, and food face upward price pressure. Hong Leong Investment Bank has revised its 2026 CPI growth forecast up from 1.7% to 2.0%. As inflation risks rise and growth prospects weaken, analysts further noted that Bank Negara Malaysia may keep its policy interest rate at 2.75% when assessing the impact of the conflict.