Malaysia: Growth to moderate as BNM holds – UOB

💡 DMK Insight

Malaysia’s 4Q25 GDP growth of 6.3% is a game changer for traders focused on Southeast Asian markets. This robust growth, driven by domestic demand and AI tech, signals a potential shift in investment flows. Traders should keep an eye on the Malaysian Ringgit and related equities, as this performance could attract foreign investment, boosting the currency and local stocks. The full-year growth projection of 5.2% also exceeds expectations, suggesting that economic momentum is building. If this trend continues, we might see a bullish sentiment in the region, especially in sectors tied to tourism and technology. However, it’s worth noting that such rapid growth could also lead to inflationary pressures, which central banks might address with tighter monetary policy. Watch for any shifts in interest rates or inflation indicators that could impact market sentiment. In the short term, keep an eye on the Ringgit’s performance against the USD and any related ETF movements. A breakout above key resistance levels could signal a strong entry point for traders looking to capitalize on this growth narrative.