DBS upgrades Malaysia’s 2026 GDP growth forecast to 5.2% on resilient domestic demand and stable bond yields.
Malaysia’s Ringgit has outperformed regional currencies this year, supported by resilient bond inflows and stable government bond yields. The currency’s strength reflects investor confidence in solid domestic fundamentals despite geopolitical risks in the Middle East.
DBS Group Research raised its 2026 real GDP growth forecast to 5.2% from 4.7%, citing strong 5.6% year-on-year growth in the first half of 2026. The upgrade follows sustained domestic demand and favorable export prospects linked to global artificial intelligence trends.
Government bond yields have remained stable, with upside pressures contained, reinforcing expectations of continued market stability. The Ringgit, however, has weakened past MYR4.00 per USD since early June.