KUALA LUMPUR, Dec. 24 (Xinhua) -- Malaysia's investment landscape heading into 2026 is expected to be driven by an infrastructure-led industrialization push, expanding semiconductor and artificial intelligence (AI) ecosystems, and a tourism-fueled rebound in services, as national policy roadmaps and large-scale public and private investments underpin medium-term growth prospects, according to several research houses.
INFRASTRUCTURE AND INDUSTRIALIZATION PUSH
CIMB Securities said in its recent report that Malaysia's medium-term growth trajectory is anchored by the National Energy Transition Roadmap (NETR), the Johor-Singapore Special Economic Zone, the New Industrial Master Plan 2030 and the 13th Malaysia Plan.
"Together, these initiatives aim to accelerate industrialization, raise economic complexity and strengthen national competitiveness," said the research house.
It noted that Malaysia's construction and infrastructure players will benefit from large-scale projects and transport connectivity.
Besides, utilities and power companies are supported by rising electricity demand from industrialization, data centers and renewable energy investments under the NETR.
Ports and logistics operators are also expected to benefit from stronger trade flows and supply chain integration through industrial corridors.
In addition, industrial and property developers are well-positioned to capture demand for industrial estates and integrated developments arising from Malaysia's industrial and high-tech push.
NSS, AI INVESTMENTS POISED FOR GROWTH
Nomura Research said that it foresees potential positive impacts across the entire Malaysian supply chain if the National Semiconductor Strategy (NSS) is well executed.
It noted that the proposed initiatives, via dedicated programs, would provide mentorship, funding and ecosystem integration to nurture and accelerate the learning curve for local IC design startups.
For outsourced semiconductor assembly and test companies, it believes the NSS offers a crucial opportunity to modernize towards advanced packaging. This includes targeted investment incentives and grants to invest in cutting-edge technologies and to support early-stage research and development and product commercialization.
The research house also highlighted that the NSS provides a new domestic market opportunity via the potential setting up of new wafer fabs and advanced packaging facilities in Malaysia.
Meanwhile, MBSB Research has foreseen that AI-driven investments will likely continue apace in 2026.
"It seems that AI-related capex may be entering a super cycle as experts project AI infrastructure spending to exceed 400 billion U.S. dollars in 2025, potentially reaching 500 billion U.S. dollars in 2026," said the research house.
Accordingly, the energy and utilities sectors should be beneficiaries as AI-driven data centers are pushing global power demand up 20 percent annually, creating equity opportunities in utilities and grid modernization.
"Malaysia should be well-positioned as, according to available data, Malaysia captured 32 percent of Southeast Asia's AI funding," it noted.
VISIT MALAYSIA YEAR TO BOOST ECONOMIC MOMENTUM
TA Securities, on the other hand, said in its recent report that Visit Malaysia Year (VMY) 2026 is set to be a major catalyst for Malaysia's domestic consumption and services activity.
"VMY 2026 is poised to drive strong tourism-led growth, supported by ambitious visitor targets, infrastructure upgrades and fiscal incentives," said the research house.
It noted that the Malaysian government now targets 43 million foreign visitors in 2025 and 47 million in 2026, with projected tourism receipts of 270 billion ringgit (about 66.65 billion U.S. dollars) and 329 billion ringgit, respectively.
According to the research house, Malaysia's medical tourism is also set to support growth, driven by rising regional demand and government tourism campaigns.
"Tourism, contributing over 15 percent of Malaysia's gross domestic product, continues to drive broad-based growth, with strong inbound and domestic spending expected to sustain its economic impact through 2025-2026," it added. ■
