Kuala Lumpur (VNA) – Malaysia’s economy maintained strong momentum in the first half of 2026 despite persistent challenges from geopolitical uncertainty, trade pressures, volatile energy prices and disruptions to global supply chains.
Speaking at the Ministry of Economy’s conference on July 27, Minister Akmal Nasrullah Mohd Nasir said preliminary estimates showed the economy expanded by 5.8% in the second quarter of 2026, lifting growth for the first six months of the year to 5.6%, up from 4.5% in the same period of 2025. The performance exceeded market expectations and was above the 4.7% full-year growth forecast for Malaysia in the International Monetary Fund (IMF)'s World Economic Outlook released in July 2026.
Inflation remained under control at 1.9% in June while labour market conditions stayed resilient. As of May, Malaysia’s labour force had risen to 17.34 million, with more than 16.82 million people employed. The labour force participation rate stood at 70.9% while unemployment remained low, at 3.0%.
Exports continued to be a key growth driver, with monthly exports reaching a record 184 billion MYR (46 billion USD) in May, supported by strong shipments of electrical and electronic products, semiconductors, automotive goods and rising demand for artificial intelligence (AI)-related products.
Akmal said economic expansion in the second quarter was broad-based, led by mining (10.2%), manufacturing (7.5%), construction (6.6%) and services (5.4%). However, agriculture contracted 3.7%, highlighting the need to prioritise food security, smallholder incomes and rural communities.
The minister said the Malaysian Government will continue monitoring global economic risks, particularly developments in energy prices, financial markets, commodities, food supplies and electricity demand.
Looking ahead, he said Malaysia’s long-term resilience will depend on reducing structural vulnerabilities while strengthening capabilities in food security, energy, exports, logistics and technology.
For the second half of 2026, the Ministry of Economy will focus on implementing the 13th Malaysia Plan (2026–2030), with the goal of translating economic gains into tangible benefits for households, workers and businesses. Its four priorities are accelerating implementation, ensuring benefits reach targeted groups across society, measuring progress through improvements in income, productivity, skills, employment and quality of life, and strengthening policy interventions when targets are not met.
Akmal stressed that Malaysia must turn budget allocations into measurable outcomes and convert investment commitments into quality jobs, stronger domestic supply chains and greater technology transfer. He added that effective public policy should be guided by clear objectives, tangible results and strong accountability./.
Malaysia to develop low-altitude economy
Speaking at the launch of the initiative on June 24, Malaysian Transport Minister Anthony Loke Siew Fook said the Civil Aviation Authority of Malaysia (CAAM) has been tasked with developing a regulatory framework to support the safe integration and expansion of low-altitude aviation services.
