Publicación: Malaysia Economic Monitor, October 2026: From Quantity to Quality - Financing Malaysia’s Productive SMEs (+...)

https://openknowledge.worldbank.org/entities/publication/966cd08c-6ece-48ff-adc2-67580e99e07f Publicación: Malaysia Economic Monitor, October 2026: From Quantity to Quality - Financing Malaysia’s Productive SMEs Malaysia’s economy remained resilient in the first half of 2026, with growth exceeding expectations despite persistent external headwinds. Growth is projected to reach 5.1 percent in 2026, above earlier projections. Continued fiscal consolidation, alongside supportive monetary policy, remains an appropriate policy mix. Deepening structural reforms to strengthen resilience and raise productivity is essential to support Malaysia’s long-term growth and job creation. Key priorities include advancing trade and investment reforms; strengthening regulatory practices and competition; improving the innovation ecosystem and capital allocation; and building workforce capabilities while better aligning skills with labor market needs. Collectively, these reforms will enhance Malaysia’s capacity to adapt to an evolving global environment, support higher quality employment, and foster more inclusive and sustainable growth.