Malaysia’s economy surges 6.0% in Q2 2026 -DOSM

Malaysia's economy experienced a notable surge of 6.0% in the second quarter of 2026, compared to 5.4% in the previous quarter and 4.4% in the same period last year. This rapid expansion is attributed to resilient exports, steady household spending, and sustained investment, with growth seen across various sectors including services and manufacturing.

Chief Statistician Siti Asiah Ahmad highlighted the crucial role of exports, particularly electrical and electronics (E&E) products and oil and gas, along with stable household spending and ongoing investment activity. The services sector, driven by business-related subsectors such as information and communications technology (ICT), also played a significant part in the expansion.

Bank Negara Malaysia's Governor, Datuk Seri Abdul Rasheed Ghaffour, noted that headline inflation rose to 1.9% from 1.6% in the previous quarter, primarily due to higher external costs following the conflict in West Asia. This increase in fuel prices, particularly for RON97 petrol and diesel, contributed to a rise in fuel-related inflation.

However, core inflation remained relatively stable at 1.9%, suggesting that underlying price pressures were still contained. Ghaffour emphasized that while producer cost pressures were rising, they were concentrated at the upstream level and did not significantly impact broader consumer prices. This robust economic performance creates a stronger foundation for Malaysia's continued growth throughout the remainder of 2026, despite ongoing external cost pressures and geopolitical developments remaining as key risks for the future.