PETALING JAYA: Malaysia's economy expanded by 6% in the second quarter of 2026, accelerating from 5.4% in the first quarter, as strong domestic demand and electrical and electronics (E&E) exports supported growth, says Akmal Nasrullah Mohd Nasir.
The latest performance, according to the Economy Minister, brought gross domestic product (GDP) growth for the first half of the year to 5.7%, up from 4.5% in the corresponding period last year.
He said growth was also underpinned by the services and manufacturing sectors, while the labour market remained resilient, adding that inflation remained contained at 1.9% in the second quarter.
Akmal said the second-quarter performance showed that Malaysia's economy continued to maintain strong momentum despite a challenging global environment.
"However, economic success cannot be measured by growth figures alone.
"What is more important is better employment opportunities, higher incomes and greater purchasing power for the people," he said in a statement on Friday (Aug 14).
He said the performance came despite continued uncertainty in the global economy, including the impact of geopolitical tensions in the Middle East on energy prices, logistics costs and supply chains.
Malaysia's diversified economic structure and strong domestic demand continued to provide a buffer against external pressures, he added.
Akmal said the government, through the National Economic Action Council (NEAC), will continue monitoring economic developments and take appropriate measures to mitigate the impact of external developments on households and businesses.
Akmal said NEAC would focus on four key measures - securing supplies, extending the availability of supplies, containing price increases and capitalising on economic opportunities.
"The priority is to ensure supplies remain adequate, prices are kept under control and business activities can continue, while taking advantage of new opportunities arising from changes in the global economy and supply chains," he said.
According to him, the government will also diversify sources of strategic supplies, strengthen trade ties and enhance domestic industrial capacity to improve economic resilience.
He said cooperation with key trading partners, including Australia, China and Japan, will be strengthened to reduce the risk of supply chain disruptions.
For the second half of 2026, Akmal said economic growth is expected to remain supported by domestic demand, a stable labour market, household spending, tourism activity and global demand for E&E products.
“The government will continue to monitor external risks and ensure policy measures and interventions are targeted appropriately.
“Over the medium to long term, implementation of the 13th Malaysia Plan (13MP) will be accelerated, with emphasis on raising productivity, attracting high-quality investments, developing talent and diversifying sources of growth,” he added.
