KUCHING: Sarawak is in line for a lift from Malaysia’s 2026 growth catalysts, with tourism and renewable energy activity both highlighted as potential supports for the state.
AFFIN Group’s Chief Economist, Alan Tan, said Sarawak’s outlook is supported by its 2025 tourism position and by investment activity that includes renewable energies in the state.
“When we look at the tourism numbers in 2025, the state of Sarawak received the third highest number of visitor arrivals.
“Assuming a scenario where if the visitor arrivals into Malaysia exit that of the 35.6 million, we think Sarawak will benefit from tourism spending as one of the catalysts of the state’s economic growth,” he said during the AFFIN Group Market Outlook and Chinese New Year Celebration Dinner 2026 at Sheraton Hotel here.
He said his investment outlook also included Sarawak, alongside other activity he expects to generate wider spillover effects.
“The revival of private investment, especially in the data centres in Kuala Lumpur, and renewable energies in Sarawak,” he added.
“And many other types of major economic activities that would bring economic multiplier to the country’s economy.”
In light of this, he shared that the Visit Malaysia 2026 is expected to lift arrivals and tourism receipts.
“The expectation is that we are going to receive close to 35 or even 40 million visitors. We know tourist arrivals into Malaysia will lead to higher tourism spending,” he reiterated.
Tan linked the tourism lift to consumer demand.
“Therefore, translating into higher consumer spending,” he said.
He said the wider domestic demand picture includes both private investment and Visit Malaysia 2026 as key drivers.
“The other factors that would drive Malaysia’s economic growth going into this year would be private investment. From the domestic demand catalyst, we have a visit to Malaysia in 2026,” he added.
He said foreign direct investment momentum across major states also supports the view that private investment will contribute more strongly than expected.
“Major states in Malaysia are receiving foreign direct investments. Private investment as a contribution to growth, GDP growth, will likely exit the expected forecast level,” he concluded.
