Tan Sri Azman Hashim
President
MASSA 

Malaysia closed 2025 on a strong footing, demonstrating resilience amid a challenging global backdrop. Bank Negara reported GDP growth of 5.2% in 2025, driven by robust household consumption and expanding exports, notably in electrical and electronics. Other key economic highlights for Malaysia include headline inflation which averaged a modest 1.4% (its lowest in five years), reflecting stable domestic demand. Private-sector lending remained healthy where total credit grew about 5.4%, with financing to SMEs up 5.9%. Investment approvals stood at over RM426 billion approved in 2025 were strong and unemployment was around 2.9%.

The year ahead in 2026 will be marred by the volatility and ramifications of the intensifying conflict in the Middle East. Its effects are rippling through the global economy. Oil prices have spiked leading to energy crises, shipping through critical routes like the Strait of Hormuz has slowed, and uncertainty has pushed up logistics costs. These developments carry immediate and structural risks. Higher energy costs feed directly into domestic inflation and production expenses. Malaysia being an open trading nation is also not spared.

As Malaysia navigates this year, growth drivers for Malaysia may optimistically include private consumption, robust investment (especially in technology and infrastructure), and continued expansion in our E&E sector. Further, global demand for semiconductors and AI-related technologies should remain very strong and Malaysia’s role in those supply chains is well-positioned for growth. Sustaining investment momentum, managing arising cost pressures and endeavours toward market diversification to hedge risks and to build supply chain resilience will be important.

Malaysia’s strong fundamentals provide some resilience, in times of economic and geopolitical shocks. We must be agile to face these challenges and build buffers against risks that could undermine confidence and business continuity.

In this context, MASSA’s mission to bridge Malaysia with the South-South developing markets remains relevant. Timor-Leste’s accession as ASEAN’s 11th member is a major milestone for regional integration and MASSA will be exploring the many business and investment prospects there, as well as with our partners across the South-South network.

I am pleased to share that the iDeas Xchange event series platform, a joint collaboration with MAJECA (Malaysia–Japan Economic Association) and Kolaxus, continues to be well received. This programme will continue into 2026, to spotlight Malaysia’s vibrant start-up ecosystem and catalyse collaboration between our members, the greater business community and tech entrepreneurs. I encourage all members to leverage iDeas Xchange to engage with innovators and collaborate to scale homegrown business and to bring them to the South–South markets.

On behalf of MASSA, I extend my thanks to all members, our Executive Committee, Ex-Officio representatives from government ministries and agencies, and our sponsors for your continued support and participation. Your active participation & contributions at our events and in our newsletters have been invaluable. I would also like to acknowledge the insightful articles shared in 2025. These inputs are enriching and help drive mutual learning.

Let us move forward to face these tempestuous times with the spirit of pragmatic cross-border collaboration with our South-South partners as we cultivate trust and build sustaining partnerships.

Tan Sri Azman Hashim
President
13 April 2026