Malaysia: Solid GDP and contained inflation – DBS

DBS Group Research expects Malaysia’s 1Q26 advance Gross Domestic Product (GDP) to grow 5.5% year-on-year, slightly below 6.3% in 4Q25 but still robust. Growth is seen supported by export-oriented electrical and electronics manufacturing, global AI tailwinds, construction and domestic demand. DBS Group Research expects Malaysia’s 1Q26 advance Gross Domestic Product (GDP) to grow 5.5% year-on-year, slightly below 6.3%… DBS Group Research expects Malaysia’s 1Q26 advance Gross Domestic Product (GDP) to grow 5.5% year-on-year, slightly below 6.3% in 4Q25 but still robust. Growth is seen supported by export-oriented electrical and electronics manufacturing, global AI tailwinds, construction and domestic demand. DBS Group Research expects Malaysia’s 1Q26 advance Gross Domestic Product (GDP) to grow 5.5% year-on-year, slightly below 6.3% in 4Q25 but still robust. Growth is seen supported by export-oriented electrical and electronics manufacturing, global AI tailwinds, construction and domestic demand. Headline inflation is projected to rise modestly to 1.7% in March, with oil-driven pressures cushioned by fiscal subsidies.AI tailwinds and mild price pressures"Malaysia’s incoming data are likely to reflect resilient… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.