Malaysia among 6 Apac economies set to grow faster than China in 2026

 Its growth is supported by its integration into the artificial intelligence supply chain, says Moody’s Analytics.

Moody’s Analytics said Malaysia, Taiwan, Singapore, India, Vietnam and Indonesia are projected to grow faster than China this year.

PETALING JAYA:

Malaysia is among six major Asia-Pacific (Apac) economies expected to record faster real GDP growth than China in 2026, with its growth supported by integration into the artificial intelligence supply chain, according to Moody’s Analytics.

In its “Asia-Pacific Outlook: RAMpocalypse Now” report, Moody’s Analytics said Taiwan, Singapore, Malaysia, India, Vietnam and Indonesia are projected to grow faster than China this year.

“GDP growth in the Apac region will slow in 2026. However, economies most deeply integrated into the AI supply chain will buck the trend. Taiwan, South Korea, Singapore, and Malaysia will grow faster in 2026 than in 2025.

“All but South Korea will outpace China this year,” the report said, according to Bernama.

The report said strong demand for semiconductors and other technology products had increased exports from Taiwan, South Korea, China and some Southeast Asian regions, balancing out weaknesses in other areas.

Moody’s Analytics said nominal goods exports from South Korea and Taiwan surpassed Japan’s in the first half of 2026 for the first time.

However, it expects overall Apac economic growth to moderate to 4.3% in 2026 from 4.4% in 2025, before slowing further to 3.7% in 2027.

It said higher prices and tighter monetary policy, partly stemming from the conflict in West Asia, were expected to weigh on household demand and investment in traditional manufacturing and services.

On monetary policy, Moody’s Analytics said Malaysia and Taiwan have kept interest rates unchanged despite tightening by several other regional central banks, although both have room to raise rates if necessary. - FMT