GEORGE TOWN, Jan 9 — Affin Bank Bhd expects Malaysia’s economy to maintain its strong momentum with gross domestic product (GDP) growth forecast at 4.3 per cent in 2026, following the likely 4.6 per cent expansion in 2025.
Its president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali said global geopolitical developments, including the recent crisis in Venezuela, have underscored the importance of energy security, with oil prices expected to remain elevated above US$56 per barrel.
“Malaysia’s economy is expected to sustain its growth momentum in 2026, supported by strong foreign direct investments (FDIs), improving fiscal discipline and resilient domestic demand.
“On the currency front, Affin Group remains optimistic on the ringgit, forecasting it to strengthen to RM4.05 against the US dollar in 2026 from RM4.06 in 2025, the outlook is supported by strong foreign inflows and sustained investor confidence,” he said at Affin Bank Group’s Chinese New Year Dinner here last night.
He said over the past year, the ringgit emerged as the best-performing currency in Southeast Asia, reflecting Malaysia’s strong economic fundamentals.
Wan Razly said 2026 is shaping up to be a defining year for the currency and the broader economy, driven by positive FDI sentiment and government measures to address the budget deficit, including the expected reduction in fuel subsidies.
He said Affin expects the FBM KLCI to trend higher, projecting it to reach 1,780 points in 2026, up from 1,680 points in 2025, representing a 6 per cent increase.
“The index is anticipated to outperform the MSCI ex-Japan Index, supported by favourable macroeconomic conditions and capital inflows,” he added.
He said its positive outlook reinforces the group’s role beyond traditional banking, guided by its vision to be Malaysia’s most creative and innovative financial company.
He said the group’s strategy continues to be anchored on three pillars, namely unrivalled customer service, digital leadership and responsible banking with impact.
“Under its customer service pillar, Affin announced the acquisition of Affin PHEIM Asset Management on Nov 20, 2025, which strengthens its presence in the fund management sector.
“The group expects to launch its asset management business by the second quarter of 2026, in addition, Moody’s Ratings has reaffirmed Affin Group’s international credit rating at ‘A3’, while upgrading its standalone rating to ‘Baa2’, reflecting strong liquidity and a solid funding profile,” he added.
Wan Razly said Affin continues to expand its physical footprint, particularly in Penang, where it operates 13 branches, including three newly launched branches in Air Itam, Bukit Mertajam and Jelutong in 2025.
He said the group plans to further expand its branch network in the first half of 2026 to enhance customer accessibility and this expansion has supported growth in its community banking segment, with loan growth in Penang rising by 8 per cent underscoring strong demand and customer confidence.
“Digital innovation and sustainability focus as part of its digital leadership agenda, Affin has introduced ATMOZFR, a lifestyle application offering access to concerts and live events, while integrating travel, dining and premium banking services such as Affin Diventium and Affin Invikta,” he added.
He said on sustainability, Affin reported that its sustainable financing portfolio accounted for 12.4 per cent of total loans as at the third quarter of 2025, progressing towards its target of 25 per cent by 2028.
He added the group is also the first financial institution to collaborate with Landasan Lumayan Sdn Bhd and The Ocean Cleanup initiative to restore the Klang River using Interceptor technology.
“Following the celebration of its 50th anniversary, Affin Group it is entering the next phase of growth with renewed purpose, leveraging strong foundations to accelerate progress, deepen stakeholder trust and seize new opportunities as it looks ahead to 2026 and beyond,” he added. — Bernama
