Kenanga IB Maintains 2025 GDP Growth Forecast at 4.8% Kenanga Investment Bank remains confident in Malaysia’s economic outlook, maintaining its 2025 GDP growth forecast at 4.8% while projecting a moderation in growth for 2026. KUALA LUMPUR: Kenanga Investment Bank Bhd has maintained its 2025 gross domestic product (GDP) growth forecast at 4.8 per cent, while projecting a moderation to 4.2 per cent in 2026, supported by broadly stable manufacturing activity. In a research note, the investment bank said the Manufacturing Purchasing Managers’ Index (PMI) averaged 49.9 in the fourth quarter of 2025, close to the neutral threshold of 50.0, indicating generally stable operating conditions despite ongoing global uncertainties stemming from US tariff measures. “With steady services expansion and resilient domestic demand, GDP growth is likely to hold up in the final quarter,” it said. Kenanga IB noted that the latest PMI reading held steady at 50.1 in December 2025, signalling stabilising conditions even as exporters continue to navigate tariff-related headwinds. The research house added that export-oriented sectors have managed to cushion weaker US-bound shipments by redirecting goods to alternative markets. However, it cautioned that the delayed impact of higher US tariffs could weigh on new orders after the festive period. Nevertheless, Kenanga IB expects the electrical and electronics (E&E) sector to remain resilient, given its exemption from higher tariffs. Meanwhile, domestic-oriented industries are expected to benefit from sustained household spending, continued fiscal support under Budget 2026, and policy initiatives outlined under the 13th Malaysia Plan. Source: Borneo Post (Sarawak) / Bernama Published: 5 January 2026 Post navigation Rising mart participation to push Bursa upwards