Kuala lumpur: Malaysia does not require an economic stimulus in light of the ongoing West Asia conflict, according to World Bank's lead economist for Malaysia, Apurva Sanghi. He stated that a stimulus at this stage could exacerbate inflationary pressures, noting that the country's inflation remains stable and manageable.

According to BERNAMA News Agency, Sanghi emphasized that stimulus measures should only be considered if inflation concerns escalate into broader economic growth challenges, similar to those experienced during the COVID-19 crisis. He addressed reporters at the release of Part 1 of the World Bank's April 2026 Malaysia Economic Monitor (MEM), which focuses on enhancing Malaysia's employment and productivity.

Sanghi reported Malaysia's inflation rate at 1.6 percent in January 2026, attributing the stability to Bank Negara Malaysia's effective monitoring and policy adjustments, including changes to the overnight policy rate in response to domestic conditions.

He acknowledged potential inflationary pressures but credited government policies with helping the public manage these challenges. These pressures stem not only from oil prices but also from other consumer goods and services. The government has introduced specific measures to control demand, and current data suggests inflation will remain stable.

Sanghi also pointed to market signals from bond yields, which suggest Malaysia is well-positioned amid global uncertainties, including the West Asia conflict.