Govt balancing inflation, growth amid West Asia conflict, maintaining GDP target for now

JOHOR BAHRU (March 29): The government is focusing on balancing public welfare, inflationary pressures, and the sustainability of the country’s economic growth following the conflict in West Asia, with the 2026 economic growth target remaining at 4 to 4.5 per cent for now.

Economy Minister Akmal Nasrullah Mohd Nasir said the projection takes into account various current risks, including geopolitical tensions and disruptions to global supply chains. However, any changes to the 2026 economic growth target will be announced by Bank Negara Malaysia.

Akmal Nasrullah said that to ensure continued economic growth, domestic spending must be maintained as necessary, private investment should continue to be driven, and the implementation of government development projects must proceed and be carried out as planned. At the same time, the government must strike a balance between protecting public welfare and ensuring that the economic growth momentum is maintained.

“The biggest pressure we are currently facing is related to oil supply issues and inflation, but this balance must be achieved while ensuring that economic growth is not affected,” he said after attending the Johor Bahru parliamentary Aidilfitri Open House here today.

Elaborating further, he said the government has also activated the National Economic Action Council (MTEN), which now meets weekly to monitor current developments based on the latest data and to examine appropriate measures to address the impact of the conflict.

Akmal Nasrullah said that the outcomes of MTEN discussions will be brought to Cabinet meetings for decisions. At the same time, he said the Ministry of Economy is also conducting engagement sessions with various parties, including small and medium enterprises (SMEs), to obtain feedback on current challenges and measures to ease the impact of economic pressures.

He added that the government is also paying attention to ensuring domestic supply, including energy, with necessary steps being taken to ensure supply continuity in the medium term.

Previously, the government had maintained its 2026 economic growth forecast at 4 to 4.5 per cent despite facing global uncertainties, with periodic reassessments to be made based on the latest developments. – Bernama