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Strong GDP growth forecast for 2026
The Malaysian economy was one of Southeast Asia’s best Jesse Wagstaff
performers in 2025 driven especially by a surge in investment
in its data centre sector.
Alongside Singapore and Vietnam, it has also managed
to cope with higher US tariffs and global trade disruptions.

Maybank Investment Bank, MBSB Investment Bank and
RHB Bank expect Malaysia’s gross domestic product growth
to exceed the government’s four percent to 4.5 percent
forecast for 2026.
The abrupt change on reciprocal tariffs due to the US It has been reported the Malaysian government will reassess
Supreme Court ruling resulted in exporters to bracing for the deal to ensure Malaysia’s economic interests are protected.
potentially more volatility. Particular focus will be given to Malaysia’s exports to the US,
“Subject to clarity on the Trump administration’s new 15 worth RM233 billion (US$59 billion) as well as the estimated
percent global tariff, Malaysia’s exports will benefit from a lower 648,000 jobs and livelihoods tied to the trade.

effective tariff compared to 19 percent,” noted Socio-Economic
Research Centre’s Executive Director, Lee Heng Guie. INDONESIA
Strengthening governance with Digital-Based SVLK+
Furniture exporters face a strengthening ringgit The Ministry of Forestry is strengthening forest product
The Malaysian ringgit recently broke the threshold of four governance through the digital-based Legality and Sustainability
against the US dollar, marking its strongest level in more Verification System (SVLK+).
than seven years as it continues a rally driven by domestic According to the ministry, SVLK+ is designed to ensure

fundamentals and global market shifts. not only the legality of timber but also sustainability, full end-
The appreciation reflects a strong performance for the to-end traceability, compliance with environmental standards
ringgit in 2025 and early 2026 making it one of the best- and transparent supply chain management through integrated
performing currencies in Asia. But some Malaysian furniture digital systems.
exporters said they remain largely unfazed by the stronger One of its main upgrades is an integrated digital traceability
currency, despite unilateral US tariffs sending many export- system that records the entire production process from upstream
driven industries into a tailspin last year. forest management to downstream distribution in an electronic
American tariffs on Malaysian exports have given them a platform that can be independently verified in real time.
competitive advantage over Chinese competitors, they noted. SVLK+ also strengthens sustainability verification by integrating

The US imposed a 19 percent tariff on Malaysia last year, with the Sustainable Forest Management Certification (S-PHL),
one of the lowest rates among members of the Association ensuring that forest operations follow responsible management
of Southeast Asian Nations (ASEAN). practices beyond administrative legality.
While Malaysia’s furniture industry has welcomed the The system improves public transparency and accountability
reciprocal tariff agreement for the business certainty it brings by expanding information access and reinforcing the role of
the Malaysian government is facing strong opposition over accredited independent verification bodies.
the trade deal signed with the US administration. Additionally, it aligns Indonesia’s timber governance