Kuala lumpur: Malaysia's ability to sustain macroeconomic stability is crucial in navigating global economic challenges amid ongoing West Asia tensions, said Juwai IQI global chief economist Shan Saeed. He emphasized that Malaysia has remained disciplined in its policies while sustaining investor confidence amid heightened geopolitical uncertainty and increasing fragilities in the global economy.

According to BERNAMA News Agency, Malaysia has implemented solid energy policy discipline, transitioning from blanket to targeted subsidies, saving RM600 million per month. This substantial saving translates into RM7.2 billion annually. Saeed noted that markets are no longer pricing growth but are instead pricing economic resilience, highlighting the robustness of Malaysia's economy. He shared these insights on Bernama TV's program "The Nation," during an episode titled "West Asia Conflict: How Malaysia Shields Its Economy," hosted by Jessy Chahal.

Addressing inflation risks stemming from higher oil prices, Saeed mentioned that Malaysia has successfully managed to contain the pass-through effects through a combination of prudent monetary policy and currency strength. "Currency appreciation takes care of inflation. Malaysia has used monetary policy and the currency in a very strategic manner so that price stability stays," he explained, adding that inflation in ASEAN remains relatively contained.

Discussing the growth outlook, Saeed said Juwai IQI anticipates Malaysia's gross domestic product (GDP) to expand between 4.5 percent and 5.5 percent in 2026, driven primarily by strong domestic consumption and investment activities. He also dismissed fears of an economic collapse stemming from the Straits of Hormuz impasse, stating that some of the stories being shared are not credible. Saeed reiterated that Malaysia has maintained macroeconomic stability, which has been its hallmark over the last five to ten years, and expressed confidence that "Malaysia will continue to survive."

Saeed identified key sectors underpinning Malaysia's growth trajectory, such as commodities, real estate, and information and communication technology (ICT), particularly in the chip segment. These sectors are supported by consistent policy direction and investment momentum. He concluded that consistency and stability will be key drivers to sustain Malaysia's growth.

Juwai IQI is an international real estate technology group.