Kuala lumpur: Malaysia's gross domestic product (GDP) is on track to achieve 5.3 percent growth in the first quarter of 2026, primarily driven by broad-based expansion across several sub-sectors, including manufacturing, services, and construction, an economist has stated.

According to BERNAMA News Agency, International Islamic University Malaysia associate professor of economics Dr. Muhammad Irwan Ariffin expressed confidence in the country's economic performance despite ongoing geopolitical headwinds, particularly in West Asia. Dr. Muhammad Irwan highlighted that although the growth rate marks a slight decline from the previous quarter's 6.3 percent in 4Q 2025, it should be viewed as a sign of stabilisation or normalisation following the extraordinary post-COVID-19 recovery.

Dr. Muhammad Irwan explained that Malaysia's ability to sustain growth amid global uncertainties signifies improved economic resilience compared to previous external shock cycles. He noted that the country has developed stronger buffers to absorb external shocks, reducing the risk of significant impacts on overall economic performance.

Historically, Malaysia's economic growth was largely driven by specific sectors targeted by government policies, making it vulnerable to external shocks. However, lessons learned from past cycles have led to a more diversified economic base, spreading growth across different sectors rather than relying on a single sector.

Dr. Muhammad Irwan also pointed out that some sub-sectors operate in isolation with limited spillover effects, while others have strong linkages that generate broader multiplier effects across the supply chain. He cited tourism as an example of a sector that requires multiple inputs and contributions across various industries, creating a strong spillover effect that benefits multiple regions and layers of society.