KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Malaysia is entering 2026 with solid economic visibility, backed by stable monetary policy, resilient domestic demand, and continued strength in the technology and semiconductor space.
According to Maybank Investment Bank, Malaysia’s GDP is expected to grow between 4.3% and 4.5% in 2026, even as global growth moderates to around 2.8%. This resilience is driven by strong investment activity, AI-related capex, and healthy MSME contributions, which continue to support employment and productivity.
On the policy front, Overnight Policy Rate (OPR) is expected to remain unchanged at 2.75%, providing a supportive environment for consumption and business expansion. While manufacturing faces tariff-related pressures, the services sector continues to act as a key buffer for overall growth.
The ringgit outlook is improving, supported by Malaysia’s strategic position in the global semiconductor supply chain. The currency is forecast to trade around RM4.00–4.05 against the US dollar in early 2026, before stabilising near RM4.05 by year-end as the US dollar weakens.
Meanwhile, Bursa Malaysia extended its winning streak to a fifth consecutive day, led by technology and semiconductor counters. Despite broader market breadth remaining mixed, investor interest stayed firm, with trading volume reaching 3.25 billion shares worth RM3.32 billion.
Globally, Wall Street was lifted by strong earnings from tech and financial heavyweights, while easing US jobless claims helped calm slowdown fears. Falling oil prices may also help ease inflation pressures in the months ahead.
Key Takeaways
Malaysia’s 2026 GDP growth forecast stands at 4.3–4.5%
OPR likely to stay at 2.75%, supporting domestic demand
Ringgit expected to strengthen, trading around RM4.00–4.05
Technology and semiconductor sectors remain key market drivers
Services sector offsets manufacturing headwinds
Global tech earnings and easing inflation risks support sentiment
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