Malaysia forecasts 5% GDP growth by 2026 and targets higher wages under RMK13

Malaysia expects its gross domestic product to expand by 5.0‑5.2% in 2026, up from earlier forecasts of 4.0‑4.5%. The growth is driven by robust exports in the electrical and electronic sector, especially semiconductors linked to artificial‑intelligence technologies. Export growth is projected to rise to 25.6% after a 27.5% surge in the first half of the year. The outlook notes external risks, including geopolitical tensions in West Asia that could affect oil prices and supply chains.

The government’s 13th Malaysia Plan (RMK13) aims to raise the share of workers’ compensation in GDP from the current 33.6% (2024) to 40% by 2030. Minister of Economy Akmal Nasrullah Mohd. Nasir said the target will be met through a shift to a high‑value, knowledge‑intensive economy, supported by the New Industrial Master Plan 2030, the National Semiconductor Strategy and the Energy Transition Roadmap. Initiatives include expanding technical and vocational education, strengthening the National Wage Council, and extending the Progressive Wage Policy to improve wages for graduates and TVET trainees.