Kuala lumpur: The government expects Malaysia's economic performance to remain strong in the second half of 2026 (2H 2026), said Minister of Economy Akmal Nasrullah Mohd Nasir. He highlighted that government intervention measures to ensure a stable oil supply through to year-end will also help sustain the country's economic momentum.

According to BERNAMA News Agency, Malaysia's economy grew by 5.8 per cent in the second quarter of 2026 (2Q 2026) from 5.4 per cent in 1Q 2026, driven by stronger performances in the services and manufacturing sectors. The Department of Statistics Malaysia (DOSM) reported that the country's economy recorded a growth of 5.6 per cent in 1H 2026 compared with 4.5 per cent in 1H 2025, with notable recovery in the mining and quarrying sector, while the construction sector continued to expand.

Akmal Nasrullah also pointed out that Malaysia must remain vigilant regarding unresolved geopolitical developments in West Asia, particularly tensions in the Strait of Hormuz, which continue to put pressure on global oil supply. Despite these challenges, Bank Negara Malaysia projects economic growth between 4.0 and 5.0 per cent for 2026.

Additionally, the Minister noted that hosting a Formula One (F1) race is anticipated to drive the country's economic growth, particularly in the tourism sector. He emphasized that major events like F1, which attract foreign visitors, will contribute through their spending in the country. The Prime Minister, Datuk Seri Anwar Ibrahim, has stressed the importance of ensuring that the benefits from such events reach small traders as well.

Last Sunday, F1 confirmed Malaysia as the host of the Gulf Air Bahrain Grand Prix, which will take place at the Sepang International Circuit (SIC) from October 2 to 4. This follows the signing of agreements between F1, the International Automobile Federation (FIA), and the Malaysian and Bahraini governments.