Malaysia sees 2026 as a yr of “execution” and “discipline,” the nation’s financial system minister mentioned, because the Anwar Ibrahim administration tries to rack up coverage achievements below the thirteenth Malaysia Plan (RMK13) forward of elections that might come as early as February 2028.
“2026 is going to be about how we deliver RMK13,” YB Akmal Nasrullah Mohd Nasir instructed Fortune forward of the Discussion board Ekonomi Malaysia summit on Feb. 5. “It’s a higher chance of success compared to trying to come up with a new policy direction,” he added later. “Two years is quite a short runway.”
Malaysia should maintain normal elections no later than February 2028, the place voters will determine whether or not to increase the mandate of present Prime Minister Anwar Ibrahim and his Pakatan Harapan governing coalition.
Akmal and his ministry are actually pushing MyRMK, a “digital system” to trace progress below RMK13. “We’re trying to address issues with a whole-of-government approach,” he mentioned. “I’m trying to ensure that those who are supposed to deliver will be tracked, so it’s not just ‘missing in action’.”
He expressed hopes that “discipline” would possibly give RMK13 longevity past anybody administration, and provides them “enough commitment to stick to the plan.”
Malaysia is getting into 2026 on a strong footing. The nation’s financial system grew by 4.9% in 2025, following 5.1% progress the earlier yr. Unemployment fell to 2.9%, the bottom price in a decade; the Malaysian ringgit can be at its strongest degree in 5 years.
Nonetheless, Akmal acknowledged that 2025 was “challenging.” In April, the U.S. imposed 25% tariffs on Malaysian items, rattling the nation’s export-led financial system. After months of negotiations, either side reached a deal: Malaysia diminished tariffs on sure U.S. merchandise in alternate for Washington reducing its duties to 19%, with exemptions for key Malaysian exports reminiscent of aviation parts and electrical tools.
Malaysia’s power in semiconductor and electrical tools manufacturing has since helped the nation’s exports amid a world AI growth. The nation’s commerce hit a document excessive final yr, surpassing 3 trillion Malaysian ringgit ($780 billion).
Economists are optimistic that Malaysia can ship a repeat robust efficiency in 2026. HSBC ASEAN economist Yun Liu forecast in a Jan. 26 report that Malaysia’s financial system will develop by 4.6% in 2026, and pointed to robust efficiency within the electrical tools and tourism sectors, in addition to sound authorities insurance policies.
Nomura economists have been much more bullish, suggesting in December that Malaysia’s financial system would possibly develop by 5.2% in 2026, because of infrastructure initiatives below RMK13.
Malaysian officers hope the nation can function impartial territory in a extra geopolitically complicated world. “We are not China, not the U.S…and that gives us a strategic position, both in terms of geopolitical positioning, as well as supply chain positioning,” YB Tuan Liew Chin Tong, Malaysia’s deputy minister of finance, mentioned on the Discussion board Ekonimi Malaysia on Feb. 5.
“Malaysia is open for investment, because we believe we have a competitive advantage,” Akmal mentioned to Fortune. “This is the best time to consider Malaysia as your [investment] destination…given our approach of being friendly to everyone and focusing on economic prosperity.”
Chips, Johor and power
A central plank of Anwar’s plan for the subsequent 5 years is the expansion of latest “Made by Malaysia” merchandise, notably in high-value sectors like semiconductors. Malaysia already performs a big function in chip meeting and testing however needs to maneuver additional upstream into areas reminiscent of design.
“We are focusing on high-growth, high-value industries,” Akmal instructed Fortune.
Final yr, Malaysia signed a 10-year licensing take care of Arm Holdings, the British semiconductor agency, granting entry to chip design blueprints and establishing the corporate’s first Southeast Asian workplace in Kuala Lumpur. The settlement additionally consists of coaching applications for 10,000 native engineers, serving to Malaysia sort out a persistent expertise hole in superior manufacturing.
Akmal mentioned the nation wanted to “upgrade” its expertise because it strives to climb up the worth chain, a priority echoed by enterprise leaders.
“Capital can be injected by a government or investor, but talent is the one [thing] we need to build,” Ooi Ching Liang, normal supervisor of enterprise growth at SkyeChip, a Malaysian chip design startup, mentioned on the Discussion board Ekonomi Malaysia on Feb. 5. Whereas Malaysia is coaching native employees, it might take “many iterations of product cycles to pick up experience,” he added, forcing corporations like SkyeChip to look abroad for expertise.
One other pillar of Malaysia’s industrial push is the Johor–Singapore Particular Financial Zone (SEZ), launched to draw high-tech funding alongside the border. The zone permits corporations to faucet Singapore’s monetary and authorized ecosystem whereas accessing Malaysia’s decrease prices and bigger land base.
Virtually one third of all authorised international direct funding into Malaysia within the first three quarters of 2025 went to the state of Johor, and Akmal–a Johor native–notes that it could quickly overtake Selangor, historically the highest vacation spot for international funding, this yr.
Akmal, who’s one among Malaysia’s youngest ministers at simply 39, is just some months into his new place, having been appointed to the function of financial system minister final December as a part of a broader cupboard reshuffle. He beforehand served as power minister, which supplies him an understanding of among the useful resource wants for a booming AI and information heart sector.
In his dialog with Fortune, Akmal reiterated pledges that Malaysia will cease utilizing coal by 2044, and be web zero by 2050, and added that the nation is “exploring the potential” of adopting nuclear energy. He’s additionally optimistic that the ASEAN energy grid–a system {of electrical} transmission crossing the varied nations of Southeast Asia–will get off the bottom quickly.
“Water and energy are no longer just utilities or resources; they are the engine of economic growth,” he says. “AI is what the world is looking at now, but the fundamental requirement will be having good resources.”
