Overview

Malaysia’s economy is projected to expand by 5.3 per cent in the first quarter of 2026,

remaining resilient amid global geopolitical uncertainties

Malaysia’s advance GDP estimates recorded a growth of 5.3 per cent in the first quarter of 2026 as compared to 6.3 per cent in the preceding quarter. The economic performance was supported by expansion in the Services, Manufacturing, Construction and Agriculture sectors. Nevertheless, the Mining and quarrying sector registered a decline during this quarter. In terms of quarter-on-quarter performance, Malaysia’s economy contracted by 4.4 per cent as compared to a positive growth of 3.3 per cent in the fourth quarter of 2025.

The Services sector expanded by 5.4 per cent in this quarter as compared to 6.3 per cent in the previous quarter. This growth was primarily supported by the performance of the Wholesale & retail trade, Information & communication and Transportation & storage sub-sectors. The Manufacturing sector grew by 5.8 per cent in the first quarter of 2026, lower than the 6.1 per cent growth in the preceding quarter. This performance was driven by increased output in Electrical, electronic & optical products; Vegetable and animal oils & fats and food processing products; and Non-metallic mineral products, basic metal & fabricated metal products sub-sectors. The Mining and quarrying sector contracted by 1.1 per cent in the first quarter of 2026 as against an increase of 2.0 per cent in the previous quarter. This decline was mainly attributed to lower production in the Crude oil & condensate and Natural gas sub-sectors in this quarter. The Agriculture sector registered a growth of 2.8 per cent in this quarter, moderating from 5.4 per cent in the fourth quarter of 2025. The performance was driven by Oil palm and Livestock sub-sectors. Meanwhile, the Rubber and Fishing sub-sectors experienced a contraction during the quarter. The Construction sector grew at a slower pace of 7.8 per cent in the first quarter of 2026 (Q4 2025: 11.0%). The growth was underpinned by positive performance in all segments, with Specialised construction activities and Non-residential buildings being the main contributors.

The Department of Statistics Malaysia (DOSM) is committed to compile and disseminate statistics that serve the needs of statistical users. DOSM will release the preliminary GDP for the first quarter of 2026 and the revised annual GDP on 15th May 2026.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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