Malaysia's economy beats expectations with 5.7pc growth, says Finance minister II

PUTRAJAYA, Aug 18 — Malaysia's economic growth in the first half of 2026 surpassed expectations, reaching an impressive 5.7% according to Finance Minister II, Datuk Seri Amir Hamzah Azizan. This growth rate exceeded the Bank Negara Malaysia's GDP projection for the same period. The first quarter saw a 5.4% GDP growth, while the second quarter recorded a 6% increase.

The IMF recently upgraded Malaysia's GDP forecast from 4.3% in January 2026 to 4.7% in April 2026. Despite global uncertainties, Malaysia's economic fundamentals remain resilient, according to Hamzah. The ringgit's value remained stable throughout the first seven months of the year, and investments approved in the first quarter of 2026 amounted to RM92.8 billion.

Malaysia has climbed eight positions to the 15th place in the 2026 World Competitiveness Index. However, the government remains committed to addressing the cost of living burden, with plans to increase cash aid allocations to RM15 billion. This includes increasing the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) cash aids.

The government is also implementing a targeted diesel subsidy scheme to ensure subsidies reach those who truly need them. The 2027 Budget is set to be presented in Parliament on Oct 9 under the theme "Malaysia Madani: Reaching for the Skies, Rooted in the Earth."