ECONOMIC CROSSCURRENTS FEBRUARY 

Published on 02 Mar 2026

ECONOMIC CROSSCURRENTS FEBRUARY
IPP MY36 Thermometer with Asia Macro Lens 

Malaysia’s macro momentum is moderating from an elevated base, transitioning into a more balanced expansion phase supported by resilient domestic demand and easing cost pressures.

The IPP MY36 Economic Thermometer remains in expansionary territory, with February’s moderation reflecting consolidation rather than a loss of traction. Growth continues to be anchored by stable labour market conditions, sustained household spending and improving cost visibility as energy, food and logistics prices normalise, while orderly financial conditions support planning and investment decisions.

Asia’s external environment is less constraining, though policy-driven risks are more prominent. FX volatility has moderated and supply-chain pressures have normalised, while US trade measures under Section 122 introduce selective trade and pricing risks.

Bottom line: As 2026 unfolds, Malaysia’s macro backdrop is increasingly execution-friendly, with intact domestic fundamentals and stabilising external conditions supporting gradual improvement in earnings and financial conditions, barring renewed global policy uncertainty.