<p>KUALA LUMPUR: Malaysia's industrial growth will remain supported by resilient domestic demand and sustained global technology demand despite potential headwinds to the artificial intelligence (AI) investment cycle, said Hong Leong Investment Bank Bhd.
Key takeaways
Malaysia's industrial growth remains resilient due to strong domestic demand and global technology needs, despite potential AI investment headwinds. The industrial production index expanded 6.3 per cent year-on-year in September, exceeding market expectations.
- The industrial production index grew 6.3 per cent year-on-year in September, up from five per cent in August.
- Stronger manufacturing and electricity output offset a deeper contraction in mining production.
- The overnight policy rate remained unchanged in 2026, with potential normalisation expected in the first half of next year.
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KUALA LUMPUR: Malaysia's industrial growth will remain supported by resilient domestic demand and sustained global technology demand despite potential headwinds to the artificial intelligence (AI) investment cycle, said Hong Leong Investment Bank Bhd.
Its economists Felicia Ling and Chong Lih Herng said the global technology upcycle would continue to anchor the country's industrial activity in the near term, while sustained strength in domestic demand would provide an additional buffer for the sector.
They said the latest industrial production data reflected improving momentum, with the industrial production index (IPI) expanding 6.3 per cent year-on-year (YoY) in September, up from five per cent in August.
