Kuala lumpur: Affin Bank Bhd anticipates the Malaysian economy will maintain robust momentum, projecting a gross domestic product (GDP) growth of 4.3 percent in 2026. This follows an expected expansion of 4.6 percent in 2025. According to BERNAMA News Agency, Datuk Wan Razly Abdullah Wan Ali, president and group chief executive officer of Affin Bank, highlighted global geopolitical developments such as the crisis in Venezuela, emphasizing the importance of energy security with oil prices forecasted to stay above US$56 per barrel.
Malaysia’s economy is expected to sustain its growth in 2026, driven by strong foreign direct investments (FDIs), improved fiscal discipline, and resilient domestic demand. Affin Group remains optimistic about the ringgit, forecasting it to strengthen to RM4.05 against the US dollar in 2026 from RM4.06 in 2025. This outlook is supported by strong foreign inflows and sustained investor confidence. Over the past year, the ringgit has emerged as the best-performing currency in Southeast Asia, reflecting Malaysia’s strong economic fundamentals.
Wan Razly stated that 2026 is shaping up to be a pivotal year for the currency and broader economy, fueled by positive FDI sentiment and government measures aimed at addressing the budget deficit, including an expected reduction in fuel subsidies. 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 percent increase. The index is anticipated to outperform the MSCI ex-Japan Index, supported by favorable macroeconomic conditions and capital inflows.
Affin’s positive outlook reinforces its role beyond traditional banking, guided by its vision to be Malaysia’s most creative and innovative financial company. The group’s strategy is anchored on three pillars: unrivaled customer service, digital leadership, and responsible banking with impact. Under its customer service pillar, Affin announced the acquisition of Affin PHEIM Asset Management, strengthening its presence in the fund management sector. The group expects to launch its asset management business by the second quarter of 2026.
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. The group plans further expansion in the first half of 2026 to enhance customer accessibility. This expansion has supported growth in its community banking segment, with loan growth in Penang rising by 8 percent, underscoring strong demand and customer confidence.
In the realm of digital innovation and sustainability, Affin has introduced ATMOZFR, a lifestyle application integrating travel, dining, and premium banking services. On sustainability, Affin reported that its sustainable financing portfolio accounted for 12.4 percent of total loans as of the third quarter of 2025, progressing towards a target of 25 percent by 2028. 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 its 50th anniversary celebration, Affin Group 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.