KUALA LUMPUR: Malaysia's economy outpaced expectations with 5.8% growth in the second quarter of 2026 (2Q), up from 5.4% in the previous quarter, the official advance estimates show.
In its release, the National Statistics Department said the stronger growth was underpinned by a faster rate of expansion in the manufacturing and mining sectors.
The economy was also supported by growth in the services and construction sectors. The agriculture sector, however, contracted during this quarter.
On quarter-on-quarter basis, Malaysia’s economy rose 1.7%, partially retracing the 4.4% decline in the first quarter of 2026.
For the first half of 2026, Malaysia's economy expanded 5.6%, as compared to 4.5% in the same period in 2025.
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According to the agency, growth in the manufacturing sector increased to 7.5% in 2Q, up from 5.9% in the preceding quarter due to increased output in the electrical, electronic and optical products; petroleum, chemical, rubber and plastic products; and non-metallic mineral products, basic metal and fabricated metal products sub-sectors.
The mining and quarrying sector experienced a turnaround, due to the higher production of natural gas, with growth leaping to a double-digit rate of 10.2% as compared to a 2.1% contraction in the previous quarter.
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Previously the fastest-growing sector, growth in construction eased to 6.6% in 2Q from 7.7% in the previous quarter. "The growth was supported by positive performance across all segments, particularly non-residential buildings and specialised construction activities," said the Statistics Department.
The services sector grew 5.4% during the quarter, as compared to 5.6% in the previous quarter, with growth driven by the wholesale and retail trade, information and communication and transport and storage sub-sectors.
The agriculture sector registered a contraction of 3.7%, from 2.6% growth in the first quarter of 2026, due mainly to a weak performance in the oil palm and fishing sub-sectors.
