Malaysia’s economy grew 6.0% in Q2 2026 as exports surged
Malaysia’s gross domestic product rose 6.0% year-on-year in the second quarter of 2026, the fastest pace since late 2023, driven by a 17.0% jump in exports and stronger domestic demand, the Department of Statistics…
Source: Human Resources Online · August 17, 2026 at 2:00 AM · AI-assisted report
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KUALA LUMPUR, 17 AUGUST 2026 —
Malaysia’s gross domestic product rose 6.0% year-on-year in the second quarter of 2026, the fastest pace since late 2023, driven by a 17.0% jump in exports and stronger domestic demand, the Department of Statistics Malaysia (DOSM) reported on Friday.
Market Impact
Growth accelerated from 5.4% in the first quarter, when the economy had expanded 5.4% year-on-year. On a seasonally adjusted quarter-on-quarter basis, GDP climbed 2.5% after a 0.03% contraction in Q1. For the first half of 2026, the economy grew 5.7% against 4.5% in the same period of 2025, DOSM data showed.
The services sector expanded 5.9%, led by wholesale and retail trade up 4.7% and motor vehicle sales up 7.5%. The information and communication industry grew 8.3% on rising data-centre activity and demand for computer services, while transport and storage rose 7.0% as both freight and passenger volumes increased.
Manufacturing activity accelerated to 7.3% from 5.9% in Q1, with electrical, electronic and optical products surging 14.4% on sustained demand for semiconductors and electronic components. Mining and quarrying rebounded 9.2% after a Q1 contraction, with natural gas output up 19.3% offsetting a 3.6% decline in crude oil and condensate. Construction grew 6.5%, supported by specialised construction work and non-residential projects.
Agriculture was the sole laggard, contracting 3.7% after a 2.6% gain in Q1. Palm oil production fell 9.5% because of lower fresh fruit bunch output, while livestock and other sub-sectors posted modest growth.
On the demand side, private final consumption expenditure rose 4.8%, up from 4.7% in Q1, accounting for 60.3% of GDP. Households spent more on restaurants and hotels (10.9%), transport (7.1%), food and non-alcoholic beverages (3.6%) and communication (3.5%).
Gross fixed capital formation grew 4.6%, slower than 7.3% in Q1, with structures up 4.6%, machinery and equipment up 4.7% and other assets up 4.3%. Government consumption rose 7.6% from 4.1% in Q1.
Exports jumped 17.0% after 5.2% growth in Q1, while imports rose 13.9% compared with 4.6%. Net exports contributed 168.5 percentage points to growth after adding 13.5 points in Q1.