PETALING JAYA: The World Bank has raised its 2026 growth forecast for Malaysia from 4.4% to 5.1%, but warns that the economy's reliance on artificial intelligence (AI)-related investments will leave it vulnerable if the global AI boom slows.
Apurva Sanghi, the lead economist for Malaysia, said more than 70% of the country's export growth in early 2026 came from increased demand for AI-related products, Bernama reported.
"Malaysia is really riding the AI wave, and while it sounds good, the corollary is that growth excluding AI-related goods has been weak, raising concerns about the economy's dependence on the AI sector.
