Overview

Malaysia's economy expanded by 5.8 per cent in

the second quarter of 2026

Malaysia’s advance GDP estimates recorded a growth of 5.8 per cent in the second quarter of 2026, improving from 5.4 per cent in the preceding quarter. The stronger growth was supported by expansion in the Services, Manufacturing, Mining and quarrying, and Construction sectors. In contrast, the Agriculture sector contracted during this quarter. In terms of quarter-on-quarter performance, Malaysia’s economy rose by 1.7 per cent, reversing the 4.4 per cent decline registered in the first quarter of 2026.

The Services sector expanded by 5.4 per cent in this quarter, slightly easing from 5.6 per cent in the previous quarter. Growth continued to be driven by the Wholesale & retail trade, Information & communication and Transportation & storage sub-sectors. The Manufacturing sector strengthened to 7.5 per cent in the second quarter of 2026, accelerating from 5.9 per cent in the preceding quarter. The better performance was underpinned by increased output in the Electrical, electronic & optical products; Petroleum, chemical, rubber and plastic products; and Non-metallic mineral products, basic metal & fabricated metal products sub-sectors.

The Agriculture sector decreased by 3.7 per cent in this quarter, from 2.6 per cent growth in the first quarter of 2026. The decline was mainly due to weak performance in the Oil palm and Fishing sub-sectors. The Mining and quarrying sector surged to 10.2 per cent in the second quarter of 2026 as compared to a 2.1 per cent contraction in the previous quarter. The marked turnaround was mainly attributed to higher production in the Natural gas sub-sector in this quarter. The Construction sector grew by 6.6 per cent in the second quarter of 2026, easing from 7.7 per cent recorded in the previous quarter. The growth was supported by positive performance across all segments, particularly Non-residential buildings and Specialised construction activities.

Overall, Malaysia’s economy grew at 5.6 per cent for the first half of the year 2026 as compared to 4.5 per cent in the same period in 2025. The Department of Statistics Malaysia (DOSM) is committed to compile and disseminate statistics that serve the needs of statistical users. DOSM will release the actual GDP for the second quarter of 2026 on 14 August 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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