PETALING JAYA: Malaysia’s economy expanded by 6% in the second quarter of the year, up from 5.4% in the first quarter.
This figure exceeded market expectations and represents Malaysia’s strongest second-quarter growth since 2014, outside the pandemic period.
The growth was supported largely by strong domestic demand and electrical and electronics (E&E) exports, Economy Minister Akmal Nasrullah Mohd Nasir said.
The latest performance – which saw the economy outperforming expectations for three consecutive quarters – 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.
Akmal said the growth was also helped by the services and manufacturing sectors, while inflation remained contained at 1.9%.
The labour market also remained resilient.
He said the strong second-quarter performance came despite a challenging global environment, including the impact of geopolitical tensions in West Asia on energy prices, logistics costs and supply chains.
Prime Minister Datuk Seri Anwar Ibrahim said the stronger-than-expected economic growth in the quarter was a testament to the government’s relentless efforts to safeguard the people’s welfare amid global economic pressures.
He said the government remained committed to making further improvements to ensure that the country’s progress translated into better incomes, quality jobs and greater support for vulnerable groups.
Anwar said the performance was underpinned by measures taken by the government including Budi Madani, Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah, targeted fuel subsidies and continued financing for small and medium enterprises.
These measures helped cushion the impact of global economic uncertainty, sustain household consumption and preserve business momentum, he added.
However, Anwar acknowledged that more needed to be done to sustain the country’s growth momentum.
“I am mindful that the Madani government still has much to do to ensure not only that this growth momentum remains sustainable, but also that the country’s wealth and progress are enjoyed by all through more meaningful incomes, quality employment opportunities and assistance for vulnerable groups.”
Akmal, in a statement, also said that employment opportunities, higher incomes and greater purchasing power for the people was more important.
He said the government, through the National Economic Action Council (NEAC), would continue monitoring economic developments and take measures to mitigate the impact of external developments on households and businesses.
He said NEAC would focus on four key measures – securing supplies, extending the availability of supplies, containing price increases and capitalising on economic opportunities.
He added that 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 was expected to remain supported by domestic demand, a stable labour market, household spending, tourism activity and global demand for E&E products.
