As an open economy, Malaysia's growth outlook remains closely tied to conditions in its major trading partners, including China, Japan, the Euro Area and Asean, all of which are expected to experience slower growth in 2026 compared with 2025.
China's car sales are expected to be flat this year, extending a downtrend, while robust electric vehicle exports in 2025 are unlikely to be sustained, a Chinese industry association said on Friday.
Most Asian stocks rose on Monday with Chinese AI shares in the lead on growing optimism over the sector, although bigger advances were held back by growing geopolitical and macroeconomic risks.
U.S. consumer sentiment perked up in early January, but households continued to worry about inflation and a weakening labor market, a survey showed on Friday.
Oil prices are likely to drift lower this year as a wave of supply creates a market surplus, although geopolitical risks tied to Russia, Venezuela and Iran will continue to drive volatility, Goldman Sachs said in a note on Sunday.
Oil prices held largely steady in Asian trading on Monday as investors weighed the risk of supply disruptions from escalating unrest in Iran against the prospect of additional barrels returning to the market from Venezuela.