Malaysia’s economy grew by 5.4 per cent in the first quarter of 2026, slightly higher than the earlier estimate of 5.3 per cent, according to Bank Negara Malaysia (BNM).
However, the growth rate was lower compared to the 6.3 per cent recorded in the fourth quarter of 2025.
In a statement today, the central bank said the 5.4 per cent expansion was mainly driven by domestic demand.
“Household spending remained supported by positive labour market conditions, with unemployment staying low, alongside targeted policy measures,” it said.
BNM noted that investment growth was underpinned by ongoing implementation of multi-year projects by both the private and public sectors, high realisation of approved investments, and continued rollout of national master plans.
Export growth remained strong, led mainly by continued expansion in electrical and electronics (E&E) exports.
“Meanwhile, import growth moderated due to slower increases in capital goods, intermediate goods, and consumer goods imports,” it added.
The central bank said the services sector grew at a more moderate pace, reflecting a decline in motor vehicle sales following front-loaded purchases in the fourth quarter ahead of the expiry of electric vehicle import duty exemptions.
“At the same time, the manufacturing sector remained supported by stronger E&E performance, in line with continued demand for components related to artificial intelligence and data centres,” BNM said.
In addition, agriculture growth was lower due to normalisation in palm oil production after previously high output levels, as well as ongoing replanting activities.
