Kuala lumpur: Malaysia's economy expanded by 6.0 per cent in the second quarter of 2026 (2Q 2026), surpassing the Department of Statistics Malaysia's (DOSM) advance estimate of 5.8 per cent, according to Bank Negara Malaysia (BNM). The central bank attributed this growth to continued domestic demand and robust exports.
According to BERNAMA News Agency, household spending was supported by steady income growth and ongoing policy support, while investment growth was underpinned by continued spending on structures and machinery and equipment. The 2Q 2026 performance exceeded the 5.4 per cent growth registered in the first quarter of 2026.
The central bank noted that export growth had accelerated, driven mainly by the continued strength in electrical and electronics (EandE) products and sustained expansion in services. Additionally, there was a rebound in exports of liquefied natural gas (LNG) and non-EandE manufacturing products. Gross imports also expanded further, amid robust growth in intermediate and consumer goods imports.
On the supply side, BNM reported that growth was underpinned by the expansion in the services and manufacturing sectors. The higher growth in the services sector was supported by business-related subsectors, especially the information and communication technology (ICT) subsector, with the expanding operationalisation of data centres. Meanwhile, the robust growth in the manufacturing sector was driven by export-oriented clusters, particularly in EandE, following strong artificial intelligence (AI)-related demand. The mining and quarrying sector growth also turned positive, reflecting stronger natural gas production.
On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 2.5 per cent from -0.03 per cent in the first quarter of 2026. BNM governor Datuk Seri Abdul Rasheed Ghaffour stated that the Malaysian economy remains on a firm footing. He projected that growth in 2026 will remain within the forecast range of 4.0-5.0 per cent, with recent developments indicating that overall growth could be around 5.0 per cent.
He further explained that while the outlook continues to be shaped by external developments, Malaysia is well-positioned to navigate these challenges from a position of strength and policy readiness. On the domestic front, household spending is expected to benefit from continued income growth as well as ongoing policy measures. Investment activity will be driven by the progress of multi-year projects in the private and public sectors, continued high realisation of approved investments, as well as the ongoing implementation of national master plans.
On the external front, export growth is expected to be underpinned by sustained demand for EandE products amid growing investment in AI-related activities and global technology expansion. Additional support is anticipated from the rebound in non-EandE exports, alongside sustained tourist spending and expansion in ICT services exports.