Malaysia's GDP projected to grow by 4.3%, ringgit continues to strengthen this year

KUCHING, Jan 16 2026: Malaysia’s economy is projected to maintain its strong momentum, with gross domestic products (GDP) growth forecast at 4.3% in 2026, continuing the growth of 4.6% achieved in last year, president and group chief executive officer of Affin Bank Berhad Wan Razly Abdullah has said last night.

Caption: Affin Bak Bhd president and group CEO Wan Razly Abdullah 

 He said Affin group also expects the ringgit to strengthen against the US dollar, with its target of RM4.05 for 2026.

“However, ringgit today has already strengthened to RM4.04. It looks like we have to revise our target on the ringgit exchange rate against the US dollar.

“We remain very bullish on the ringgit, supported by strong foreign inflows and investor confidence,” he said at the Affin Chinese New Year dinner here.

Wan Razly noted that over the past year, the Malaysian ringgit has been Southeast

Asia’s best-performing currency, a clear reflection of Malaysia’s strong fundamentals.

“With this momentum, 2026 is poised to be another record year for the ringgit and the economy.

“This is driven by the strong foreign direct investment  (FDI) sentiment and government addressing the budget deficit with the expected reduction of the  fuel subsidies and pension liabilities.

“Following the strong ringgit and inflow of FDI, we anticipate a strong elevation for the Kuala Lumpur Composite Index (KLCI) as a result of this tailwinds to catapult KLCI to reach 1,780 in 2026, a significant increase from 1,680 in 2025.

“This is an increase of 6%,” he said.

Sarawak records RM198.7 billion in total trade in 2024, attracts RM106 billion in investments since 2021

KUCHING, Jan 16 2026: Sarawak recorded RM198.7 billion in total trade, with a RM71.1 billion trade surplus, for the year 2024.

Caption: Premier Abang Johari Openg says  that infrastructure remains a key driver of ompetitiveness, stating that better roads improve efficiency and help manage costs. 

Premier Abang Johari Openg said these are are positive indicators, but they arealso a reminder that the state must stay focused, keep improving, and continueearning confidence through delivery.

“We also value sustained investor interest over time,” he said in his speech at Affin Bank’s Chinese New Year dinner here last night.

 His text of speech was read by Deputy Premier Douglas Uggah.

The premier noted that Sarawak attracted RM105.9 billion in investments from 2021 to the third quarter of last year.

 “This confidence matters and it must be strengthened through consistent implementation and practical improvements that businesses and communities can feel,” he added.

He stressed that infrastructure remains a key driver of competitiveness, stating that better roads improve efficiency and help manage costs.

He said stronger ports and logistics widen market access and support trade capacity while reliable networks give businesses the certainty to operate, expand, and innovate.

“That is why connectivity is not just a development item. It is an everydayadvantage,” he said, citing  the Pan Borneo Highway Sarawak Phase 1, as an example.

However, the premier explained that modern economies are not built on physical infrastructure alone, but they are also built on the strength of financial infrastructure.

He said the ability to mobilise capital productively  to support enterprise responsibly, adding that to widen participation so more people and businesses can benefit from growth.

“This is why financial institutions matter. They are not merely service providers. They are partners in building confidence, enabling SMEs to expand, supporting trade and investment activity, and strengthening the resilience of households and communities,” the premier said.