Malaysia’s economy grows 5.3pc in third quarter, slower than previous quarter

KUALA LUMPUR, Oct 16 — Malaysia's economy grew by 5.3 percent in the third quarter of 2026, a slowdown compared to the 6.0 percent expansion in the previous quarter, according to the Department of Statistics Malaysia (DOSM). The increase in GDP was driven by all economic sectors except mining and quarrying, which experienced a contraction.

The first three quarters of 2026 saw Malaysia's economy growing by 5.5 percent, surpassing the 4.8 percent growth in the same period last year. The services sector, particularly wholesale and retail trade, information and communication, and finance and insurance, led the economic growth in the third quarter. The manufacturing sector strengthened to 7.5 percent, supported by export-oriented industries like electrical, electronic, optical products, and petroleum, chemicals, rubber, and plastics products.

The construction sector grew by 6.0 percent, mainly due to the non-residential buildings sub-sector, especially data center construction projects, and specialized construction activities. The agriculture sector rebounded to 1.3 percent, driven by the oil palm and livestock sub-sectors. Mining and quarrying, however, contracted by 4.9 percent, mainly due to a decline in the crude oil and condensate sub-sector. The preliminary GDP report for 3Q 2026 will be published on November 18, 2026.