Stronger economy, stable fuel supplies and F1 return set to benefit Malaysians in 2H 2026

MALAYSIANS can expect stronger economic opportunities in the second half of 2026 as the government projects continued growth supported by stable fuel supplies, resilient domestic demand and major international events expected to boost tourism and local businesses.

Economy Minister Akmal Nasrullah Mohd Nasir said government intervention measures, including efforts to ensure sufficient domestic oil supplies until the end of the year, would help cushion the economy against external shocks and support continued growth.

A stable fuel supply is expected to help contain business operating costs, support consumer spending and reduce the risk of wider price pressures that could affect households.

“Economic growth for the first half of 2026 has already reached 5.6 per cent. Bank Negara Malaysia has maintained its full-year 2026 growth forecast at between 4.0 per cent and 5.0 per cent.

“We hope to achieve the best possible performance in the second half of the year, but at the same time we must remain prepared for any eventuality,” he told reporters after attending the Association of Malaysian Economics Undergraduates (AMEU) Economics Summit 2026 today.

Akmal said the government remained vigilant over geopolitical developments in West Asia, particularly tensions surrounding the Strait of Hormuz, which could disrupt global oil supplies and put pressure on energy prices.

Despite these external risks, Malaysia’s economy has continued to perform strongly.

According to the Department of Statistics Malaysia (DOSM), the economy expanded by 5.8 per cent in the second quarter of 2026, up from 5.4 per cent in the first quarter, driven by stronger growth in the services and manufacturing sectors.

DOSM also reported that Malaysia’s economy grew by 5.6 per cent in the first half of 2026, compared with 4.5 per cent during the same period last year, supported by a recovery in the mining and quarrying sector, while the construction sector continued to expand.

The stronger economic performance is expected to support job creation, generate new business opportunities and sustain income growth across key sectors.

Akmal also highlighted the return of Formula One to Malaysia as a catalyst for economic growth, particularly through increased tourism.

He said international events such as Formula One attract foreign visitors whose spending creates positive spillover effects across the wider economy.

“Furthermore, Prime Minister Datuk Seri Anwar Ibrahim has emphasised that the benefits of hosting major international events such as this should not be confined to certain segments of society, but should be broadened so that small traders and businesses also benefit,” he said.

Formula 1 confirmed on July 26 that Malaysia will host the Formula One Gulf Air Bahrain Grand Prix at the Sepang International Circuit from Oct 2 to Oct 4 under a collaboration between Formula One, the Fédération Internationale de l'Automobile (FIA), and the governments of Malaysia and Bahrain.

The government expects the event to inject fresh spending into the economy during the final quarter of the year, benefiting businesses ranging from multinational companies to small and medium-sized enterprises, while reinforcing Malaysia's position as a regional destination for tourism and international sporting events. - August 1, 2026