Kuala Lumpur (VNA) – Malaysia’s economy grew by 6% in the second quarter of 2026, exceeding previous forecasts, thanks to sustained domestic demand, strong export growth, and expansion in the services and manufacturing sectors.
Governor of the Central Bank of Malaysia (BNM) Abdul Rasheed Ghaffour said on August 14 that consumer spending continued to be a key driver of the economy, supported by sustained retail activity and improving income prospects.
According to BNM, Malaysia’s GDP growth in the second quarter exceeded the forecast of 5.8% and accelerated from 5.4% in the first quarter. All key economic sectors, except agriculture, recorded growth. Overall, Malaysia’s GDP expanded by 5.7% in the first six months of 2026, significantly higher than the 4.5% growth recorded in the same period last year.
Rasheed said investment activity continued to be supported by foreign capital inflows and a large number of newly approved projects, particularly in high-value-added manufacturing and services sectors such as electrical and electronic (E&E), chemicals, and information and communication technology (ICT).
As of June, 85% of manufacturing projects approved between 2021 and February 2026 had progressed to implementation, ranging from factory construction to production and machinery installation.
Malaysian exports also recorded strong growth in the second quarter, with widespread increases across key export segments. BNM expects E&E exports to remain a key driver of Malaysia’s trade growth.
Rasheed said the country’s diversified export structure and sustained investment in data centres were expected to support the growth of Malaysia’s digital services exports in the coming period./.
