ECONOMIC CROSSCURRENTS APRIL 

Published on 01 May 2026

ECONOMIC CROSSCURRENTS APRIL

Malaysia is entering an externally-driven cooling phase, with financial markets repricing risk ahead of lagged macro adjustment. The IPP MY36 Thermometer has declined to its lowest level since tracking began, reflecting weaker external demand, tighter global financial conditions and re-emerging cost pressures at the margin. The adjustment is being led by forward-looking indicators, while domestic fundamentals remain intact, resulting in a more uneven and externally dependent growth profile.

Asia’s macro-financial environment is turning less supportive, as USD strength, geopolitical tensions and policy uncertainty reshape financial and trade dynamics. While supply chains remain operationally stable, risks are increasingly driven by liquidity conditions and policy developments, raising sensitivity to capital flows, currency movements and cross-border demand.