Malaysia's Economy Grows 5.3% in Q1 2026, Moderating from Previous Quarter
Malaysia's economy expanded by 5.3 percent year-on-year in the first quarter of 2026, according to official advance estimates released by the statistics department. This growth represents a moderation from the 6.3 percent expansion recorded in the final quarter of 2025, which was the fastest pace in three years. The recent increase was primarily driven by sustained activity in the manufacturing, services, and construction sectors. However, momentum has slowed compared to the previous period, and the mining and quarrying sector contracted by 1.1 percent due to lower crude oil and natural gas production. Chief Statistician Mohd Uzir Mahidin described the economy as fundamentally resilient despite global uncertainties and elevated oil prices resulting from geopolitical tensions. Meanwhile, Bank Negara Malaysia recently adjusted its 2026 growth forecast upward to between 4 and 5 percent, citing strong household spending, steady exports, and tourism recovery. Inflationary pressures remain a concern, with consumer prices rising 1.7 percent in March. Final figures for the first quarter are scheduled for release on May 15.
Wire timeline
Malaysia's Economy Grows 5.3% in Q1 2026, Moderating from Previous Quarter
Malaysia's economy expanded by 5.3 percent year-on-year in the first quarter of 2026, according to official advance estimates released by the statistics department. This growth represents a moderation from the 6.3 percent expansion recorded in the final quarter of 2025, which was the fastest pace in three years. The recent increase was primarily driven by sustained activity in the manufacturing, services, and construction sectors. However, momentum has slowed compared to the previous period, and the mining and quarrying sector contracted by 1.1 percent due to lower crude oil and natural gas production. Chief Statistician Mohd Uzir Mahidin described the economy as fundamentally resilient despite global uncertainties and elevated oil prices resulting from geopolitical tensions. Meanwhile, Bank Negara Malaysia recently adjusted its 2026 growth forecast upward to between 4 and 5 percent, citing strong household spending, steady exports, and tourism recovery. Inflationary pressures remain a concern, with consumer prices rising 1.7 percent in March. Final figures for the first quarter are scheduled for release on May 15.
Latest News