FX.co ★ Malaysia's GDP Growth Picks Up in Q2

Malaysia’s economy expanded by 5.8% year-on-year in Q2 2026, accelerating from 5.4% in the previous quarter, according to preliminary estimates. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that resilient domestic demand and broad-based improvements in key productive sectors continued to drive growth, despite weakness in agriculture.

Mining and quarrying rebounded sharply, growing 10.2% after contracting 2.1% in Q1, mainly supported by higher natural gas output. Manufacturing growth also picked up, rising 7.5% compared with 5.9% previously, underpinned by stronger production of electrical, electronic and optical products, as well as petroleum, chemical, rubber and plastic products.

Growth remained robust but moderated slightly in the services sector (5.4% vs. 5.6%) and construction (6.6% vs. 7.0%). By contrast, agriculture contracted 3.7% after expanding 2.6% in Q1, reflecting weaker production in the oil palm and fishing subsectors.

For the first half of 2026, Malaysia’s economy grew 5.6%, up from 4.5% in the same period a year earlier.