DBS analytics manager Han Teng Chua flagged semiconductor tariffs as a key downside risk, describing the recent talks about US-Malaysia zero-tariff agreement as “far-fetched”.
DBS has set a 4.2% growth forecast for Malaysia in 2027 and maintained its 4% estimate for 2026, but cautioned about the external outlook, especially US tariffs on the semiconductor sector.
The bank also kept its 2026 inflation target for the country at 2.0% through 2027, with an anticipated 25-basis-point overnight policy rate cut by Bank Negara Malaysia in the first half of 2026.
