Malaysia’s economy grew by 6 per cent in the second quarter of 2026, exceeding the 5.8 per cent median forecast by Bloomberg and the initial estimate by the Department of Statistics Malaysia (DOSM).
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the latest figure represented the strongest second-quarter growth outside the pandemic period since 2014, reflecting the resilience of the Malaysian economy despite global supply shocks.
He said robust domestic demand and stronger external activity supported the performance, bringing Malaysia’s economic growth for the first half of 2026 to 5.7 per cent.
Anwar said the Government had taken proactive measures to shield households and businesses from disruptions to global supply chains, particularly amid the impact of the West Asian crisis on the global economy.
“Among the measures were financing support for affected small and medium enterprises, as well as maintaining targeted fuel subsidies to protect households and businesses from external economic shocks,” he said in a statement on Friday.
He said these measures helped sustain household spending, support business activity and preserve economic momentum during the second quarter.
Private consumption expanded by 4.8 per cent, driven by stronger spending in restaurants and hotels, transport, as well as food and beverages, particularly during festive celebrations, the mid-year school holidays and tourism-related activities.
Both private and public investment also continued to expand, supported by investments in technology and the implementation of major infrastructure projects nationwide.
Malaysia’s external sector recorded strong growth as total trade surged 34.1 per cent to RM1 trillion during the quarter, while the trade surplus increased more than fivefold to RM84 billion.
Industrial activity also strengthened, with the Industrial Production Index rising 7.7 per cent in the second quarter, supported by higher output in the manufacturing, mining and electricity sectors.
Meanwhile, inflation remained under control at 1.9 per cent, while employment increased by 1.1 per cent to 16.8 million people. The unemployment rate stood at three per cent.
Despite the encouraging figures, Anwar cautioned that the Government must not become complacent, noting that many Malaysians were still grappling with the rising cost of living while certain workers and businesses continued to face challenging conditions.
He stressed that the Government’s objective was not merely to pursue higher growth figures, but to ensure the country’s economic progress translated into better living standards through meaningful income growth, quality employment opportunities and support for vulnerable groups.
Malaysia, he added, remained strategically positioned to benefit from global demand for electrical and electronics (E&E) products, the upcycle in global technology, growing artificial intelligence (AI) adoption and continued digitalisation.
Investments in technology, data centres and major infrastructure projects are expected to further strengthen productive capacity while creating more high-quality employment opportunities.
The Government will also continue implementing reforms under the Ekonomi Madani agenda while maintaining fiscal discipline as a key priority, with the medium-term target of reducing the fiscal deficit to three per cent or lower.
