US markets extended losses as rising oil prices and a sharp sell-off in tech stocks weighed on sentiment , overshadowing dovish signals from the Federal Reserve. Key Market Moves S&P 500 fell 0.4% to 6,343.72 Nasdaq dropped 0.7% to 20,794.64 Dow Jones rose 0.1% to 45,216.14 Key takeaway: Tech weakness and oil-driven inflation fears are dragging the broader market lower. What’s Driving the Sell-Off? 1. Oil Prices Surge Again Crude oil jumped over 5% to around US$105 Driven by ongoing US–Iran–Israel conflict Higher oil = higher inflation risk = pressure on equities 2. Tech Stocks Lead the Decline Heavy losses in AI, chip, and data-related names: Applied Digital : -13.5% AXT Inc : -13% Micron Technology : -9.9% Arm Holdings : -5% Intel : -4.5% Super Micro Computer : -4.1% AI and semiconductor stocks are facing profit-taking and valuation concerns 3. Fed Comments Not Enough to Lift Sentiment Jerome Powell signaled no immediate rate hikes despite rising energy pri...
Malaysia’s economy is expected to remain resilient in 2026, with strong domestic demand and investments driving growth, even as global uncertainties persist.
Key Highlights
- BNM forecasts GDP growth at 4%–5% in 2026
- Higher than Ministry of Finance’s 4.0%–4.5% projection
- 2025 GDP grew 5.2%, beating expectations
Key takeaway: Malaysia’s growth remains solid, supported by internal drivers despite global risks.
What’s Driving Malaysia’s Growth?
1. Strong Domestic Consumption
- Supported by steady income growth and labour market stability
- Civil servant salary adjustments to boost spending
Private consumption remains the backbone of growth
2. Continued Investment Momentum
- Expansion driven by:
- E&E (electronics and semiconductors)
- ICT and digitalisation trends
- Ongoing infrastructure and approved projects
Investment cycle remains positive, though moderating
3. Key Sectors Leading Growth
- Services sector (5.2% growth)
- Tourism (Visit Malaysia Year 2026)
- Financial services and ICT
- Manufacturing (4.3% growth)
- Driven by AI and semiconductor demand
Technology and services continue to power growth
Risks to Watch
Despite strong fundamentals, external risks remain:
- Geopolitical tensions (Middle East conflict)
- Global trade slowdown and tariffs
- Supply chain disruptions
- Slower global growth (expected 2.7%–3.2% in 2026)
External environment remains the biggest downside risk
Weak Spots
- Agriculture and mining sectors expected to contract
- Due to normalising commodity output and maturing oil fields
Final Take
Malaysia’s 2026 outlook reflects strong domestic resilience versus global uncertainty:
- Internal demand supports growth
- External risks remain a key challenge
As long as domestic momentum holds, Malaysia can sustain steady growth, but global shocks remain the main risk.
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