SHAH ALAM, Nov 14 — The state is expected to maintain moderate economic growth of between 5.0 and 5.5 per cent next year, outpacing the national average, said Menteri Besar Dato' Seri Amirudin Shari.
This growth is supported by Selangor’s diverse industrial structure, technology-intensive sectors, strong local enterprises, and world-class logistics networks.
"Strategic investments in the digital sector, clean energy, and logistics will serve as key catalysts for the state’s long-term competitiveness and sustainability," he said when tabling the 2026 Selangor Budget in the State Legislative Assembly today.
Citing the Selangor Business Sentiment Survey (SBSS) 2026, conducted by the Selangor Research Institute, Amirudin noted that more than half of firms in the state, or 51.4 per cent, plan to expand their operations, with 29.2 per cent focusing on hiring new workers and 25.3 per cent on investing in technology.
This high confidence in the domestic market, coupled with a focus on digital transformation and productivity improvements, reflects a progressive business outlook.
"Despite challenges such as rising operating costs, shortages of skilled labour, and limited access to financing, the business sector continues to demonstrate growing maturity and resilience,” he said.
The state must also strengthen its structural strategies and policies for the Second Selangor Plan (RS-2) period (from 2026 to 2030) to navigate the challenging global economic landscape.
Amirudin added that these policies will form the foundation for more inclusive, green, and competitive growth through an integrated approach that aligns economic, social, and environmental development.
"Strategic priorities must focus on enhancing small and medium enterprise productivity, driving the digital economy, developing workforce reskilling initiatives, and strengthening fiscal governance,” he said.
Meanwhile, Selangor's gross domestic product (GDP) this year is projected to reach 5.4 per cent, with economic activity amounting to RM455 billion.
While the growth rate is lower than the 6.3 per cent recorded in 2024, the Menteri Besar said positive momentum is expected to persist, driven by resilient domestic demand.
"External factors such as geopolitical tensions, sluggish global demand, and tight monetary policies in advanced economies are expected to put pressure on investment and exports.
"However, Selangor’s strong economic structure enables the state to maintain stable and resilient growth,” Amirudin said, noting that state government interventions focused on stimulating growth and social well-being have further strengthened business resilience.
