Kuala lumpur: Malaysia's current account balance (CAB) recorded a surplus of RM10.8 billion in the second quarter of 2026 (2Q 2026), primarily supported by a substantial increase in the goods surplus to RM40.7 billion, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, the balance of payments statistics for 2Q 2026 released today indicated that the surplus cushioned the decline in the services account, which turned to a deficit of RM0.7 billion from a surplus of RM6.4 billion in 1Q 2026. The financial account reversed to a net outflow of RM27.0 billion, contributed by outflows in portfolio investment amounting to RM35.2 billion.

Foreign direct investment (FDI) narrowed to a net inflow of RM7.4 billion, whereas direct investment abroad (DIA) outflows moderated to RM7.0 billion, reflecting reduced cross-border investment activities by Malaysian companies. The current account surplus in 2Q 2026 was supported by sustained strong demand for electrical and electronic products, petroleum products, and machinery, equipment, and parts, particularly from the United States, Singapore, and China.

Imports of goods increased by 21.7 percent quarter-on-quarter to RM318.6 billion, with major contributions from intermediate goods and capital goods predominantly from China, Singapore, and Taiwan. Meanwhile, the primary income account posted a higher deficit of RM27.2 billion compared with the preceding quarter, largely influenced by the increased earnings generated by foreign investors in Malaysia, which rose to RM47.2 billion.

Malaysian companies abroad earned a higher income of RM22.8 billion, following a rise in dividend repatriations by direct investors over the quarter. Concurrently, the secondary income account deficit narrowed to RM2.1 billion from RM4.0 billion in the first quarter, underpinned by higher receipts from abroad.

As of the end of 2Q 2026, the accumulated FDI position reached RM1.11 trillion, whereas the DIA position stood at RM624.9 billion. The country's total financial assets were valued at RM2.82 trillion, slightly exceeding total liabilities of RM2.75 trillion. Therefore, Malaysia's International Investment Position recorded a net asset of RM68.3 billion, with international reserves standing at RM537.0 billion as of end-June 2026.