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Malaysia sees 2026 as a year of “killing” and “discipline,” the country’s economy minister said, as the Anwar Ibrahim administration tries to rack up policy achievements under the 13th Malaysia Plan (RMK13) ahead of elections that could come as early as February 2028.
“2026 is about how we deliver RMK13,” YB Akmal Nasrullah Mohd Nasir told luck ahead of the Forum Ekonomi Malaysia summit on February 5. “This is a higher chance of success compared to trying to create a new policy direction,” he added later. “Two years is a short runway.”
Malaysia must hold a general election no later than February 2028, where voters will decide whether to extend the mandate of current Prime Minister Anwar Ibrahim and his Pakatan Harapan governing coalition.
Akmal and his ministry are now pushing MyRMK, a “digital system” to track progress under RMK13. “We are trying to solve the issues in a whole-of-government approach,” he said. “I try to make sure that those who are supposed to deliver are tracked, so that they are not ‘missing in action’.”
He expressed hope that “discipline” would give RMK13 longevity beyond any administration, and give them “enough commitment to stick to the plan.”
Malaysia enters 2026 on a strong footing. The country’s economy will grow by 4.9% in 2025, after 5.1% growth last year. Unemployment fell to 2.9%, the lowest rate in a decade; the Malaysian ringgit is also at its strongest level in five years.
However, Akmal acknowledged that 2025 will be “challenging.” In April, the US imposed a 25% tariff on Malaysian goods, disrupting the country’s export-led economy. After months of negotiations, the two sides reached an agreement: Malaysia lowered tariffs on some US products in exchange for Washington lowering its duties to 19%, with exceptions for Malaysia’s main exports such as aviation components and electrical equipment.
Malaysia’s strength in semiconductor and electrical equipment manufacturing has since helped the country’s exports amid the global AI boom. The country’s trade hit a record high last year, surpassing 3 trillion Malaysian ringgit ($780 billion).
Economists are optimistic that Malaysia will return to strong performance in 2026. HSBC ASEAN economist Yun Liu predicted in a January 26 report that Malaysia’s economy will grow by 4.6% in 2026, and points to the strong performance of the electrical equipment and tourism sectors, as well as good government policies.
Nomura economists are more bullish, suggesting in December that Malaysia’s economy could grow by 5.2% in 2026, thanks to infrastructure projects under RMK13.
Malaysian officials hope the country can serve as neutral territory in an increasingly complex geopolitical world. “We are not China, not the US…and that gives us a strategic position, in terms of geopolitical positioning, as well as supply chain positioning,” YB Tuan Liew Chin Tong, Malaysia’s deputy finance minister, said at Forum Ekonimi Malaysia on February 5.
“Malaysia is open for investment, because we believe we have a competitive advantage,” Akmal said in luck. “This is the best time to consider Malaysia as your (investment) destination…given our approach to be friendly to all and focus on economic development.”
Chips, Johor and energy
The center of Anwar’s plan for the next five years is the growth of new products “Made by Malaysia”, especially in high-value sectors such as semiconductors. Malaysia plays a big role in chip assembly and testing but wants to move forward in areas such as design.
“We are focusing on high-growth, high-value industries,” Akmal said luck.
Last year, Malaysia signed a 10-year licensing deal with Arm Holdings, the British semiconductor firm, which provided access to chip design blueprints and established the first Southeast Asian office in Kuala Lumpur. The agreement also includes training programs for 10,000 local engineers, helping Malaysia address a persistent talent gap in advanced manufacturing.
Akmal said the country needs to “upgrade” its talent as it tries to move up the value chain, a concern echoed by business leaders.
“Capital can be injected by the government or investors, but talent is the one (thing) we need to build,” Ooi Ching Liang, general manager of business development at SkyeChip, a Malaysian chip design startup, said at Forum Ekonomi Malaysia last Feb.
Another pillar of Malaysia’s industrial push is the Johor–Singapore Special Economic Zone (SEZ), launched to attract high-tech investment across the border. The zone allows companies to tap into Singapore’s financial and legal ecosystem while accessing Malaysia’s lower costs and larger land base.
Almost one-third of all approved foreign direct investment into Malaysia in the first three quarters of 2025 went to the state of Johor, and Akmal–a Johor native–says it will soon overtake Selangor, traditionally the top destination for foreign investment, this year.
Akmal, who is one of Malaysia’s youngest ministers at 39, is only a few months into his new position, having been appointed to the role of economy minister in December as part of a wider cabinet reshuffle. He previously served as energy minister, which gave him insight into some of the resource requirements for a booming AI and data center sector.
In his conversation good luck, Akmal reiterated pledges that Malaysia will stop using coal by 2044, and become net zero by 2050, adding that the country is “exploring the potential” of adopting nuclear power. He is also optimistic that the ASEAN power grid–a system of electrical transmission that crosses different countries in Southeast Asia–will disappear soon.
“Water and energy are no longer commodities or resources; they are the engine of economic growth,” he said. “AI is what the world is looking at now, but the basic requirement is to have good resources.”
This story was originally featured on Fortune.com
