KUALA LUMPUR, April 9 — Malaysia does not need stimulus amid the West Asia crisis, said the World Bank’s lead economist for Malaysia, Apurva Sanghi.
He said providing a stimulus now would only add to the inflationary impulse, noting that inflation in Malaysia remains stable and contained at present.
“As of now, there should be no stimulus. Providing a stimulus now would only add to the inflationary impulse.
“Stimulus is (only needed) if inflationary fears snowball into growth concerns like we saw happen during the COVID-19 crisis,” he told reporters at today’s briefing on Part 1 of the World Bank’s April 2026 Malaysia Economic Monitor (MEM), titled “Raising the Ceiling, Raising the Floor, Advancing Malaysia’s Jobs and Productivity Agenda”.
Sanghi said Malaysia’s inflation is stable and well contained, with the January rate at 1.6 per cent.
He said this is attributed to the efforts of Bank Negara Malaysia in monitoring and evaluation, policy measures, and adjustments to the overnight policy rate to reflect domestic conditions.
Sanghi noted that while inflationary pressures could emerge, the government’s policies and measures are helping the public cope with the situation.
He said inflationary pressures arise not only from direct oil prices but also from other goods and services consumed.
“There are ways to manage demand on that front as well, and the government has announced certain policies. As of now, all the data and evidence point towards inflation continuing to remain stable,” he said.
Apurva also opined that market signals from three- and 10-year bond yields indicate that expected inflation points to Malaysia being in a strong position amid global uncertainties such as the West Asia conflict.
