KUALA LUMPUR: Malaysia's economy is projected to grow 5.1 percent in 2026, an upward revision of 0.7 percentage points following stronger-than-expected activity in the first half, fueled by strong growth in global artificial intelligence (AI)-related activities, the World Bank said on Tuesday.
Across the region, several economies, including Malaysia, have grown more quickly than anticipated in 2026, propelled by the manufacture and export of high-tech goods that have underpinned a global surge in AI-related activity, the World Bank said in its East Asia and Pacific Economic Update.
Domestic demand is expected to remain the main growth driver.
Malaysia's economy remained resilient in the first half of 2026, with real gross domestic product (GDP) growth accelerating to 6 percent in the second quarter from 5.4 percent in the first quarter.
The stronger-than-expected expansion was driven largely by net exports, particularly stronger artificial intelligence (AI)-related demand for electrical and electronic products and information and communications technology services, the World Bank said.
