MALAYSIA’S economy accelerated sharply in the second quarter of 2026, expanding 6.0% year-on-year compared with 5.4% in the first quarter and 4.4% in the same period last year, underlining the resilience of domestic economic activity despite a challenging external environment.
Chief Statistician Siti Asiah Ahmad said the stronger performance was supported by sustained exports, particularly electrical and electronics (E&E) products and oil and gas, alongside stable household spending and continued investment activity.
“On the supply side, growth was supported by the expansion of the services and manufacturing sectors,” she said at a press conference on the second-quarter 2026 economic performance at Bank Negara Malaysia’s Sasana Kijang in Kuala Lumpur today.
She said the stronger expansion in the services sector was driven by business-related subsectors, particularly information and communications technology (ICT), amid increased operations at data centres.
The 6.0% expansion marks a significant acceleration from the previous quarter and places the economy on a stronger footing as Malaysia enters the second half of the year.
Meanwhile, Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour said headline inflation rose to 1.9% in the second quarter from 1.6% in the first quarter.
Core inflation, however, moderated to 1.9% from 2.1% previously, indicating that underlying price pressures remained relatively contained.
“The increase in headline inflation largely reflected higher external cost pressures following the conflict in West Asia,” he said.
He said higher fuel prices, particularly RON97 petrol and diesel, during the quarter contributed to stronger fuel-related inflation compared with the first quarter.
“Although producer cost pressures increased, these pressures remained concentrated at the upstream level. Spillover effects remained limited at subsequent stages of production and on broader consumer prices during the quarter,” he said.
The latest figures point to broad-based economic momentum, with external trade, domestic consumption, investment, services and manufacturing all contributing to growth.
The stronger second-quarter performance also provides a firmer base for Malaysia to sustain expansion through the remainder of 2026, although external cost pressures and geopolitical developments remain key risks to the outlook. - August 14, 2026
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