Malaysia to contract 0.1% in 2020 if conditions persist, says World Bank's Richard Record

Malaysia to contract 0.1% in 2020 if conditions persist, says World Bank's Richard Record

Opinion and analysis of today’s international and local news that matter to Malaysians. Everything you need to know to start and plan your work.

Opinion and analysis of today&rsquo;s international and local news that matter to Malaysians. Everything you need to know to start and plan your work.

Morning Brief

GDP of -0.1% in 2020 For Malaysia, World Bank Says

Indonesia’s economy grew by more than 5% in the first half of 2026, but strong headline growth has yet to convince financial markets. Capital outflows, a weakening rupiah and concerns over President Prabowo’s expansionary fiscal policies have forced Bank Indonesia into aggressive rate hikes, while higher fuel costs and the threat of El Niño add further pressure. Can Southeast Asia’s largest economy maintain its growth momentum while repairing investor confidence and keeping its fiscal ambitions in check?



Image Credit: Shutterstock

Indonesia’s economy grew by more than 5% in the first half of 2026, but strong headline growth has yet to convince financial markets. Capital outflows, a weakening rupiah and concerns over President Prabowo’s expansionary fiscal policies have forced Bank Indonesia into aggressive rate hikes, while higher fuel costs and the threat of El Niño add further pressure. Can Southeast Asia’s largest economy maintain its growth momentum while repairing investor confidence and keeping its fiscal ambitions in check?Image Credit: Shutterstock

Can Indonesia Restore Investor Confidence?

The US-Iran conflict has entered a more dangerous phase, with attacks widening across the region, oil prices surging past US$105 a barrel and uncertainty growing over the Strait of Hormuz. Inside Iran, sanctions, fuel rationing and shortages are adding to economic pressure, while the IAEA’s decision to refer Tehran to the UN Security Council raises the stakes over its nuclear programme. With President Trump suggesting the war could continue until after the US midterm elections, what is Iran’s strategy now, and is there still a path towards de-escalation?

Image Credit: Shutterstock

The US-Iran conflict has entered a more dangerous phase, with attacks widening across the region, oil prices surging past US$105 a barrel and uncertainty growing over the Strait of Hormuz. Inside Iran, sanctions, fuel rationing and shortages are adding to economic pressure, while the IAEA’s decision to refer Tehran to the UN Security Council raises the stakes over its nuclear programme. With President Trump suggesting the war could continue until after the US midterm elections, what is Iran’s strategy now, and is there still a path towards de-escalation? Image Credit: Shutterstock

GDP of -0.1% in 2020 For Malaysia, World Bank Says

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