Malaysia sees 2026 as a year of \u201cexecution\u201d and \u201cdiscipline,\u201d the country\u2019s economy minister said, as the Anwar Ibrahim administration tries to rack up policy achievements under the 13th Malaysia Plan (RMK13) ahead of elections that could come as early as February 2028.<\/p>\n
\u201c2026 is going to be about how we deliver RMK13,\u201d YB Akmal Nasrullah Mohd Nasir told Fortune ahead of the Forum Ekonomi Malaysia summit on Feb. 5. \u201cIt\u2019s a higher chance of success compared to trying to come up with a new policy direction,\u201d he added later. \u201cTwo years is quite a short runway.\u201d<\/p>\n
Malaysia must hold general elections no later than February 2028, where voters will decide whether to extend the mandate of current Prime Minister Anwar Ibrahim and his Pakatan Harapan governing coalition.\u00a0<\/p>\n
Akmal and his ministry are now pushing MyRMK, a \u201cdigital system\u201d to track progress under RMK13. \u201cWe\u2019re trying to address issues with a whole-of-government approach,\u201d he said. \u201cI\u2019m trying to ensure that those who are supposed to deliver will be tracked, so it\u2019s not just \u2018missing in action\u2019.\u201d<\/p>\n
He expressed hopes that \u201cdiscipline\u201d might give RMK13 longevity beyond any one administration, and give them \u201cenough commitment to stick to the plan.\u201d<\/p>\n
Malaysia is entering 2026 on a solid footing. The country\u2019s economy grew by 4.9% in 2025, following 5.1% growth the previous year. Unemployment fell to 2.9%, the lowest rate in a decade; the Malaysian ringgit is also at its strongest level in five years.\u00a0<\/p>\n
Still, Akmal acknowledged that 2025 was \u201cchallenging.\u201d In April, the U.S. imposed 25% tariffs on Malaysian goods, rattling the country\u2019s export-led economy. After months of negotiations, both sides reached a deal: Malaysia reduced tariffs on certain U.S. products in exchange for Washington lowering its duties to 19%, with exemptions for key Malaysian exports such as aviation components and electrical equipment.<\/p>\n
Malaysia\u2019s strength in semiconductor and electrical equipment manufacturing has since helped the country\u2019s exports amid a global AI boom. The country\u2019s trade hit a record high last year, surpassing 3 trillion Malaysian ringgit ($780 billion).\u00a0<\/p>\n
Economists are optimistic that Malaysia can deliver a repeat strong performance in 2026. HSBC ASEAN economist Yun Liu forecast in a Jan. 26 report that Malaysia\u2019s economy will grow by 4.6% in 2026, and pointed to strong performance in the electrical equipment and tourism sectors, as well as sound government policies.\u00a0<\/p>\n
Nomura economists were even more bullish, suggesting in December that Malaysia\u2019s economy might grow by 5.2% in 2026, thanks to infrastructure projects under RMK13.\u00a0<\/p>\n
Malaysian officials hope the country can serve as neutral territory in a more geopolitically complex world.\u00a0 \u201cWe are not China, not the U.S\u2026and that gives us a strategic position, both in terms of geopolitical positioning, as well as supply chain positioning,\u201d YB Tuan Liew Chin Tong, Malaysia\u2019s deputy minister of finance, said at the Forum Ekonimi Malaysia on Feb. 5.<\/p>\n
\u201cMalaysia is open for investment, because we believe we have a competitive advantage,\u201d Akmal said to Fortune. \u201cThis is the best time to consider Malaysia as your [investment] destination\u2026given our approach of being friendly to everyone and focusing on economic prosperity.\u201d<\/p>\n
Chips, Johor and energy<\/p>\n
A central plank of Anwar\u2019s plan for the next five years is the growth of new \u201cMade by Malaysia\u201d products, particularly in high-value sectors like semiconductors. Malaysia already plays a significant role in chip assembly and testing but wants to move further upstream into areas such as design.<\/p>\n
\u201cWe are focusing on high-growth, high-value industries,\u201d Akmal told Fortune.<\/p>\n
Last year, Malaysia signed a 10-year licensing deal with Arm Holdings, the British semiconductor firm, granting access to chip design blueprints and setting up the company\u2019s first Southeast Asian office in Kuala Lumpur. The agreement also includes training programs for 10,000 local engineers, helping Malaysia tackle a persistent talent gap in advanced manufacturing.<\/p>\n
Akmal said the country needed to \u201cupgrade\u201d its talent as it strives to climb up the value chain, a concern echoed by business leaders.\u00a0<\/p>\n
\u201cCapital can be injected by a government or investor, but talent is the one [thing] we need to build,\u201d Ooi Ching Liang, general manager of business development at SkyeChip, a Malaysian chip design startup, said at the Forum Ekonomi Malaysia on Feb. 5. While Malaysia is training local workers, it can take \u201cmany iterations of product cycles to pick up experience,\u201d he added, forcing companies like SkyeChip to look overseas for talent.\u00a0<\/p>\n
Another pillar of Malaysia\u2019s industrial push is the Johor\u2013Singapore Special Economic Zone (SEZ), launched to attract high-tech investment along the border. The zone allows companies to tap Singapore\u2019s financial and legal ecosystem while accessing Malaysia\u2019s lower costs and larger land base.<\/p>\n
Almost one third of all approved foreign direct investment into Malaysia in the first three quarters of 2025 went to the state of Johor, and Akmal\u2013a Johor native\u2013notes that it may soon overtake Selangor, traditionally the top destination for foreign investment, this year.<\/p>\n
Akmal, who is one of Malaysia\u2019s youngest ministers at just 39, is just a few months into his new position, having been appointed to the role of economy minister last December as part of a broader cabinet reshuffle. He previously served as energy minister, which gives him an understanding of some of the resource needs for a booming AI and data center sector.\u00a0<\/p>\n
In his conversation with Fortune, Akmal reiterated pledges that Malaysia will stop using coal by 2044, and be net zero by 2050, and added that the country is \u201cexploring the potential\u201d of adopting nuclear power. He\u2019s also optimistic that the ASEAN power grid\u2013a system of electrical transmission crossing the various countries of Southeast Asia\u2013will get off the ground soon.\u00a0<\/p>\n
\u201cWater and energy are no longer just utilities or resources; they are the engine of economic growth,\u201d he says. \u201cAI is what the world is looking at now, but the fundamental requirement will be having good resources.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Malaysia sees 2026 as a year of \u201cexecution\u201d and \u201cdiscipline,\u201d the country\u2019s economy minister said, as the Anwar…\n","protected":false},"author":2,"featured_media":462601,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,55268,46,3845],"class_list":{"0":"post-462600","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-economic-outlook","12":"tag-economy","13":"tag-malaysia"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/462600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=462600"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/462600\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/462601"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=462600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=462600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=462600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}