Malaysia Projected To Grow 4.3 Pct Annually From 2026-2035, 'SEA-6' Economies Set For Steady Growth – Report
By Anas Abu Hassan
SINGAPORE, Sept 16 (Bernama) -- Malaysia is projected to register an average annual gross domestic product (GDP) growth of 4.3 per cent from 2026 to 2035, according to a report entitled “From Tailwinds to Trade-Offs: Southeast Asia Outlook 2026-2035” released today.
It said the growth forecast will be supported by a strong trade position, alongside strong upside from semiconductors, data centres and artificial intelligence (AI)-linked investment.
The third edition outlook by Bain & Company, DBS Bank and Vriens & Partners showed that Southeast Asia's six largest economies (SEA-6) are projected to grow by an average of 4.8 per cent annually between 2026 and 2035. The SEA-6 comprise Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
"Growth will be supported by sustained foreign investment and capital formation, continued industrialisation and infrastructure development, as well as productivity gains from technology adoption. Resilient domestic consumption and favourable demographics in several of the larger economies will provide further impetus," the three companies said in a joint statement.
According to the report, global conditions will set the boundaries for the region's growth over the next decade, while near-term policy choices will determine how individual economies perform within them. Countries will need to pursue different domestic priorities, but their prospects remain closely connected through trade, investment, supply chains, energy and technology, it added.
Meanwhile, the report highlighted that Singapore remained the region’s most resilient economy, supported by its safe-haven status, deep markets, fiscal buffers and trusted hub credibility. Its position as a regional centre for capital also facilitates investment and business opportunities across Southeast Asia.
The republic attracted more than 60 per cent of the region's foreign direct investment (FDI) and is ASEAN's regional capital hub, while also being the largest source of FDI into Indonesia, Malaysia, Thailand and Vietnam.
"This two-way role enables Singapore to connect global capital and capabilities with businesses and opportunities across Southeast Asia, reinforcing the interdependence between its success and that of the wider region.
"Its key constraints are energy dependence and demographics; sustaining growth will require continued talent attraction and the broad diffusion of AI-led productivity gains across the economy," the statement said.
-- BERNAMA