Asia Insights: Malaysia: BNM holds with rising optimism

Research evidence excerpt

Asia Insights: Malaysia: BNM holds with rising optimism

Nomura | Asia Insights 9 July 2026

Appendix

Fig. 3: Malaysia - Comparison of BNM monetary policy statements

Key lines in the monetary policy statement

7-May-26 9-Jul-26

Decision Unchanged at 2.75% Unchanged at 2.75%

Global growth Sharp increases in energy and commodity prices as well Going forward, a sustained de-escalation of the Middle

outlook as supply chain disruptions from the Middle East conflict East conflict would further improve global supply chain

are beginning to weigh on the global growth momentum. conditions. Downside risks to global growth remain,

Downside risks to global growth remain elevated stemming from continued uncertainties surrounding the

stemming from the uncertainties surrounding the length conflict, tighter global financial conditions and concerns

and severity of the conflict, tighter global financial over valuations in financial markets. Upside potential

conditions and concerns over valuations in financial includes faster-than-expected recovery in supply chain

markets. Upside potential includes de-escalation of the conditions, stronger tech spending and pro-growth policy

conflict leading to improving supply chain conditions, measures in key economies.

stronger tech spending and pro growth policy measures in

key economies.

Moving forward, uncertainties surrounding the duration Malaysia’s strong fundamentals will continue to underpin

and severity of the Middle East conflict will affect the the economy’s resilience against external shocks.

outlook of domestic growth and inflation. Nevertheless, Employment, wage growth and policy measures will

Malaysia’s strong fundamentals will continue to underpin remain supportive of household spending. Investment

the economy’s resilience.