Malaysia's economic growth is likely to moderate in 2H as higher costs, trade uncertainty and geopolitical tensions weigh on business activity and consumer spending, MBSB Research says in a note. However, private consumption could continue to drive growth, backed by a healthy labor market, wage growth, government support and tourism spending, it says. Exports and investment should also stay supportive, helped by technology demand and infrastructure projects, it reckons. MBSB Research raises Malaysia's 2026 economic growth forecast to 4.5% from 4.2%, supported by stronger-than-expected 1H performance and resilient domestic demand. It also raises 2026 inflation estimate to 2.0% from 1.8%, citing elevated global oil prices. MBSB expects Bank Negara Malaysia to keep its policy rate at 2.75% through year-end, given steady domestic growth dynamics and well-contained inflation. (yingxian.wong@wsj.com)