Malaysia GDP Growth Slowest in a Year

Malaysia’s economy expanded 5.3% year-on-year in the third quarter of 2026, easing from 6% in the previous period and marking the slowest growth in a year, preliminary estimates showed. Mining and quarrying contracted by 4.9%, compared with 9.2% growth in Q2, reflecting lower crude oil and condensate production. Growth also moderated in services (5.4% vs 5.9%) and construction (6.0% vs 6.5%). In contrast, agriculture rebounded to 1.3% growth from a 3.7% contraction, driven by higher output in the oil palm and livestock subsectors. Manufacturing growth accelerated to 7.5% from 7.3%, supported by export-oriented industries, particularly electrical, electronic and optical products, as well as petroleum, chemical, rubber and plastic products. In the first three quarters of the year, Malaysia’s economy expanded by 5.5%, compared with 4.8% in the corresponding period a year earlier.

Malaysia’s economy expanded by 6% year-on-year in Q2 2026, higher than the initially estimated 5.8% and picking up from 5.4% growth in Q1. Activity strongly rebounded in mining and quarrying (9.2% vs -2.1% in Q1), mainly driven by a sharp expansion in natural gas production (19.3%). Output also rose faster in manufacturing (7.3% vs 5.9%) and services (5.9% vs 5.6%). On the other hand, output growth slowed in construction (6.5% vs 7.7%), while agriculture contracted (-3.7% vs 2.6%), primarily due to declines in oil palm (-9.5%) and fishing (-4.4%). On the expenditure side, growth picked up in household consumption (4.8% vs 4.7%) and government spending (7.6% vs 4.1%). Net trade also contributed positively to GDP, as exports climbed 17% (vs 5.2%), while imports rose at a softer 13.9% (vs 4.6%). Meanwhile, growth slowed in gross fixed capital formation (4.6% vs 7.3%). On a quarterly basis, GDP expanded 2.5%, the strongest growth since Q2 2020, after stagnating in Q1.

Malaysia’s economy expanded 5.8% year-on-year in Q2 2026, accelerating from 5.4% in the previous period, according to preliminary estimates. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said resilient domestic demand and improvements across key productive sectors continued to underpin growth, despite weakness in agriculture. Mining and quarrying rebounded strongly (10.2% vs. -2.1% in Q1), mainly driven by higher natural gas production. Manufacturing growth also accelerated (7.5% vs. 5.9%), primarily supported by increased output of electrical, electronic and optical products, as well as petroleum, chemical, rubber and plastic products. Growth remained solid but eased in services (5.4% vs. 5.6%) and construction (6.6% vs. 7.0%). Meanwhile, agriculture contracted (-3.7% vs. 2.6%), reflecting weaker output in the oil palm and fishing subsectors. In the first half of 2026, Malaysia’s economy grew 5.6%, up from 4.5% in the same period a year earlier.