Affin Bank Expects Revival In Malaysia’s Investment Cycle In 2H 2026

KUALA LUMPUR, April 22 (Bernama) -- Malaysia is expected to see a revival in its investment cycle in the second half of 2026 (2H 2026), supported by strong domestic demand despite the West Asia conflict, according to Affin Bank Bhd.

Group chief economist Alan Tan Chew Leong said investment is likely to pick up alongside resilient private consumption, which should help cushion any potential slowdown in exports following uncertainties stemming from the United States-Iran conflict. 

“As a result, Malaysia’s gross domestic product (GDP) growth is likely to remain in the range of 4.5 to 5 per cent, while the government’s fiscal position should remain manageable,” he said during a webinar examining the global and Malaysian implications of the West Asia conflict.