Malaysia's Economy Stays Resilient Despite Global Uncertainty - Amir Hamzah - Portal Rasmi Kementerian Kewangan

PUTRAJAYA, 13 AUGUST 2026 —

**Malaysia’s Economy Maintains Strong Growth Amidst Global Headwinds, Says Finance Minister**

Speaking at the launch of the GEAR-uP Progress Report, Amir Hamzah highlighted that the country’s gross domestic product (GDP) expanded by 5.2% in 2024 and matched that growth rate in 2025. The first quarter of 2026 saw GDP growth accelerate to 5.4%, while advance estimates for the second quarter indicate a further pickup to 5.8%. The average growth for the first half of 2026 stands at 5.6%, he noted.

“Overall, the Malaysian economy remains strong,” Amir Hamzah said. “Despite trade disputes last year and ongoing conflicts in West Asia this year, Malaysia continues to grow and move toward becoming a developed nation.”

He attributed the positive performance to the effective implementation of the MADANI Economy Framework, a government initiative aimed at fostering inclusive and sustainable economic growth. The framework’s various initiatives are beginning to yield tangible benefits for both the economy and public well-being, he added.

The government’s GEAR-uP programme, spearheaded by the Ministry of Finance since 2024, is a key driver of this momentum. The programme is designed to stimulate the economy through domestic direct investment (DDI) totalling RM120 billion over the five-year period from 2024 to 2028.

Government-linked investment companies (GLICs) and government-linked companies (GLCs) play a central role in executing GEAR-uP initiatives. These entities help domestic industries access talent, attract foreign investment, and acquire technical expertise, Amir Hamzah explained.

“GLICs and GLCs assist local industries in securing skilled workers and attracting international partners who bring capital and know-how,” he said. “While securing funds is important, it is equally crucial to ensure these resources are deployed effectively so that the people benefit directly and Malaysia progresses toward developed nation status.”

He stressed that the government’s focus is not merely on capital inflows but on sustainable development that translates into tangible improvements in living standards.

Amir Hamzah expressed confidence that Malaysia is on track to meet its long-term development goals under the MADANI Economy agenda, provided all stakeholders continue to collaborate effectively.

“I am encouraged by what we have achieved so far,” he said. “We are on the right path, and insya-Allah, Malaysia will mature into a more developed and prosperous nation in the future.”

The government’s upbeat assessment comes as global economic conditions remain volatile, with trade tensions and regional conflicts posing ongoing challenges. Despite these headwinds, Malaysia’s consistent growth trajectory underscores the resilience of its economic fundamentals and the effectiveness of its policy frameworks.

Economists have noted that Malaysia’s diversified economy, strong domestic demand, and proactive government policies have helped buffer external shocks. The sustained GDP growth—above the 5% mark for three consecutive years—also reflects robust performance across key sectors, including manufacturing, services, and agriculture.

The GEAR-uP programme’s RM120 billion investment commitment is expected to catalyse further private sector participation and innovation, particularly in high-value industries such as technology, green energy, and advanced manufacturing. GLICs and GLCs, including major entities like Khazanah Nasional Berhad, Permodalan Nasional Berhad (PNB), and the Employees Provident Fund (EPF), are expected to play pivotal roles in channelling these investments into strategic sectors.

Industry observers have welcomed the government’s emphasis on talent development and knowledge transfer, viewing it as essential for long-term competitiveness. By attracting foreign expertise and fostering local talent, Malaysia aims to reduce its reliance on low-skilled labour and transition toward a higher-value economy.

Regional peers have taken note of Malaysia’s steady performance. While some Southeast Asian economies have faced slower growth due to external pressures, Malaysia’s ability to maintain above-5% growth has been highlighted as a positive outlier. Analysts suggest that prudent fiscal management, a stable political environment, and targeted industrial policies have contributed to this outcome.

Looking ahead, the government remains cautious yet optimistic. Amir Hamzah acknowledged that global uncertainties—such as fluctuating commodity prices, geopolitical tensions, and shifts in trade policies—could still pose risks. However, he reiterated that Malaysia’s diversified economic structure and strong institutional frameworks provide a solid foundation for navigating these challenges.

The Ministry of Finance is expected to release more detailed economic projections in the coming months, including full-year GDP estimates for 2026. For now, the government’s message is clear: Malaysia’s economic resilience is not accidental but the result of deliberate policy choices and coordinated efforts across public and private sectors.

As the country advances toward its Vision 2030 goals, the focus will remain on ensuring that growth is inclusive, sustainable, and beneficial to all Malaysians. With the GEAR-uP programme in full swing and the MADANI Economy agenda gaining traction, the government appears committed to turning its economic aspirations into reality.

Related: Ministry of Finance · Amir Hamzah · Putrajaya