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.
To ensure continued economic growth, domestic spending must be maintained as necessary, private investment should continue to drive growth, and government development projects must proceed as planned. At the same time, the government must strike a balance between protecting public welfare and maintaining the momentum of economic growth.
“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 Hari Raya Aidilfitri Open House today.
Akmal added that the government has also activated the National Economic Action Council, which now meets weekly to monitor developments using the latest data and to examine appropriate measures to address the conflict's impact.
Its discussion outcomes will be brought to Cabinet meetings for decisions. Meanwhile, the Economy Ministry is also conducting engagement sessions with various parties, including small and medium enterprises, to gather feedback on current challenges and on measures to mitigate the impact of economic pressures.
He said the government is also paying attention to domestic supply, including energy, and is taking necessary steps to ensure continuity of supply in the medium term.
Previously, the government had maintained its 2026 economic growth forecast at four to 4.5 per cent despite global uncertainties, with periodic reassessments based on the latest developments.
