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Market Highlights
Economic Update
Wed, 13 May 2026 07:41 am
Malaysia Labour Market - Steady outlook despite headwinds ahead

• The unemployment rate held at 2.9% in March, in line with still-firm domestic activity.

• Resilient domestic demand and sustained global demand for the E&E segment should continue to anchor labour market resilience.

• In the near term, continued frontloading activities should help stabilise business operations and provide some support to overall employment.

• That said, downside risks to employment remain, as prolonged supply disruptions could weigh on businesses, particularly SMEs.

• We expect labour market conditions to remain broadly resilient, with the unemployment rate averaging 3.0% in 2026 (2025: 3.0%).

Economic Update
Mon, 11 May 2026 07:19 am
Malaysia Industrial Production - Steady outlook amid inventory frontloading

The Industrial Production Index (IPI) remained firm at +3.1% YoY in March (Feb: +3.1%), although below consensus of +3.5%, underpinned by firmer manufacturing output.
Rebound in the refined petroleum products subsector suggests no immediate drag on domestic fuel production.
Frontloading and stockpiling activities should help cushion short-term risks from raw material supply disruptions.
We maintain our 2026 manufacturing growth forecast at +4.5% YoY (YTD: +5.7%; 2025: +4.5%) and GDP forecast at +4.7% (2025: +5.2%).

Economic Update
Fri, 08 May 2026 09:47 am
BNM MPC Meeting: BNM to remain data-dependent

• BNM kept the OPR at 2.75% at its May MPC meeting, in line with our expectations.
• The policy tone was slightly cautious, particularly on the balance of risks surrounding the growth and inflation outlook amid fluid Middle East developments.
• BNM will remain data-dependent. While the hurdle for a rate hike remains high, a rate cut cannot be ruled out should the conflict materially weigh on the domestic economy.
• Given that the growth and inflation outlook remain intact, we continue to expect BNM to maintain the OPR at 2.75% through 2026.

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