KUALA LUMPUR, May 16, 2026 — Senior Political Advisor to Prime Minister Dato’ Seri Anwar Ibrahim, Datuk Seri Utama Tengku Zafrul Tengku Aziz, has urged Malaysians not to panic amid rising goods prices, stressing that the economy must continue to grow to protect jobs, incomes, and investments.
In a video message shared on X (formerly Twitter), Tengku Zafrul acknowledged that prices are under upward pressure this year, primarily due to external factors such as the conflict in West Asia (Middle East). He contrasted two scenarios: rising prices while the economy remains resilient, or rising prices alongside economic collapse.
“The economy must not collapse. If prices rise due to external pressures, the economy needs to keep moving — people can still earn a living, job opportunities remain, and investments continue to flow in,” he said.
His remarks come as Malaysia’s economy posted stronger-than-expected growth of 5.4% in the first quarter of 2026 (Q1 2026), beating initial advance estimates of 5.3% and Bloomberg forecasts. This follows 6.2% growth in Q4 2025 and builds on the 5.2% annual expansion recorded in 2024 and 2025.
According to Bank Negara Malaysia (BNM), the growth was driven mainly by robust domestic demand, sustained household spending supported by low unemployment, and strong investment activity. On the external front, exports — particularly in electrical and electronics (E&E) — remained resilient despite global uncertainties.
Headline inflation rose modestly to 1.6% in Q1 2026 from 1.3% previously, reflecting some pass-through of higher global fuel costs linked to regional conflicts. Core inflation, however, eased to 2.1%.
Tengku Zafrul highlighted the government’s ongoing support measures under the MADANI framework to cushion the impact on the rakyat:
- RON95 petrol subsidised at RM1.99 per litre via BUDI MADANI.
- Targeted diesel subsidies for sectors like public transport and logistics.
- Continued cash assistance (e.g., Sumbangan Asas Rahmah) for eligible low-income households.
- RM5 billion SME Stabilisation Relief Facility to help small businesses manage cash flow and operations.
He emphasised that a stronger economy allows Malaysians to offset higher costs through continued employment and business opportunities, rather than facing job losses and shrinking activity in a downturn.
“Prices can rise due to external pressures, but our economy is still developing. The government is working to reduce the effects through subsidies, assistance, and ensuring investments keep coming in,” Tengku Zafrul added.
The advisor called on the public to avoid panic while remaining vigilant, noting that a resilient nation prepares early by safeguarding prices, businesses, jobs, and economic momentum.
This message aligns with the MADANI Government’s approach of fiscal discipline and targeted support amid global challenges. Full-year 2026 growth is officially forecast at 4% to 5%.
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