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

In the first half of 2026, Malaysia's economy delivered impressive growth figures, surpassing Bank Negara Malaysia's GDP projections. Finance Minister II, Datuk Seri Amir Hamzah Azizan, reported that GDP grew by 5.4% in the first quarter and 6% in the second quarter, resulting in an overall growth rate of 5.7%. This performance exceeded the International Monetary Fund's (IMF) forecast, which had been raised from 4.3% in January 2026 to 4.7% by April 2026.

Despite global economic uncertainties, Malaysia's economic fundamentals remained resilient, and the ringgit value remained stable throughout the first seven months. The country's credit rating was maintained at A3 with a 'Stable' outlook by Moody's Ratings. Malaysia's position in the World Competitiveness Index improved from 23rd to 15th place.

However, the growth achievements are meaningless if people continue to struggle with high living costs. To address this, the government has increased cash aid allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) from RM10 billion in 2024 to RM15 billion. Additionally, the government is implementing a targeted diesel subsidy mechanism to ensure subsidies reach those who need them most while reducing leakage.

The 2027 Budget, themed "Malaysia Madani: Reaching for the Skies, Rooted in the Earth," is set to be presented in Parliament on October 9.