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

Malaysia's economy expanded by 5.3% in the third quarter of 2026, according to an advance estimate released by the Statistics Department. This figure was slightly higher than the 5.2% growth recorded in the same period last year. The growth rate decreased from 6% in the previous quarter, with all sectors contributing to the increase, except for mining and quarrying.

Throughout the first nine months of 2026, the economy expanded by 5.5%, compared to 4.8% in the corresponding period in 2025. The services sector continued to drive the growth, expanding by 5.4%, fueled by wholesale and retail trade, information and communication, and finance and insurance activities. Manufacturing activity rose by 7.5%, up from 7.3% in the previous quarter, driven by export-oriented industries such as electrical, electronic, and optical products, as well as petroleum, chemicals, rubber, and plastics.

Construction growth slowed to 6% from 6.5% in the previous quarter, supported by non-residential projects, particularly data centers and specialized construction works. The agriculture sector rebounded by 1.3% after contracting by 3.7% in the previous quarter, driven by oil palm and livestock activities. Conversely, the mining and quarrying sector contracted by 4.9%, reversing the 9.2% expansion seen in the second quarter due to a decline in crude oil and condensate production.

Bank Negara Malaysia is expected to release the official third-quarter GDP figures on November 18.