Malaysia's first-half GDP growth of 5.7% beats central bank's 2026 target
PUTRAJAYA, Aug 18 — Malaysia’s gross domestic product grew 5.7% in the first half of 2026, exceeding Bank Negara Malaysia’s 4-5% projection for the year, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
Source: mediaselangor.com · August 18, 2026 at 6:00 AM · AI-assisted report
Single-sourceKUALA LUMPUR, 18 AUGUST 2026 —
PUTRAJAYA, Aug 18 — Malaysia’s gross domestic product grew 5.7% in the first half of 2026, exceeding Bank Negara Malaysia’s 4-5% projection for the year, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
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GDP expanded 5.4% in the first quarter and 6.0% in the second quarter, the minister told the 2027 Budget Engagement Session.
“In April 2026 the International Monetary Fund raised Malaysia’s GDP forecast from 4.3% to 4.7%, while most other countries saw their projections lowered,” he said. “Despite global uncertainty, Malaysia’s fundamentals remain resilient.”
Malaysia moved up eight places to 15th in the 2026 World Competitiveness Index from 23rd the previous year. Moody’s Ratings kept Malaysia’s A3 rating with a stable outlook and expects growth to outpace peers with similar ratings.
The ringgit held steady in the first seven months of 2026 despite volatile global markets, he added. First-quarter approved investments reached RM92.8 billion.
Amir acknowledged the strong numbers but warned they offer little comfort if households still face high living costs. Inflation rose to 1.8% in the first seven months of 2026 after global crude prices climbed on West Asian tensions.
To cushion the impact, the government increased targeted aid under Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah from RM10 billion in 2024 to RM15 billion in 2026. A one-off SARA Appreciation of RM500 each is being distributed to 22 million Malaysians aged 18 and above, helping sustain domestic demand.
Fuel subsidies have also been streamlined. Starting July 1 2026, subsidised diesel is sold at RM2.10 per litre up to 200 litres a month using MyKad, with an additional 100 litres available to eligible private diesel vehicle owners. The RON95 subsidy remains at RM1.99 per litre for 200 litres monthly through the BUDI Madani RON95 programme.
Deputy Finance Minister Liew Chin Tong, Treasury Secretary-General Tan Sri Johan Mahmood Merican, Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour and other senior officials attended the session, along with industry representatives, associations and economists.
The 2027 Budget, themed “Malaysia MADANI: Reaching for the Skies, Rooted in the Earth,” will be tabled in Parliament on October 9.
Related: Bank Negara Malaysia · Kuala Lumpur