Malaysia’s 2H2026 growth outlook stays robust, says Economy Minister
Malaysia’s economy is seen growing between 4% and 5% in 2026 despite global risks, the Minister of Economy said.
Source: The Edge Malaysia · August 1, 2026 at 7:02 AM · AI-assisted report
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MALAYSIA, 1 AUGUST 2026 —
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Malaysia’s economy is seen growing between 4% and 5% in 2026 despite global risks, the Minister of Economy said.
Market Impact
Akmal Nasrullah Mohd Nasir told reporters after the AMEU Economics Summit 2026 that the government expects strong second-half momentum to continue. Malaysia’s gross domestic product rose 5.6% in the first half of 2026, compared with 4.5% a year earlier, driven by mining, services and manufacturing.
Bank Negara Malaysia still projects 2026 growth at 4%–5%, the minister said, citing BNM’s latest forecast. Government measures to stabilise domestic oil supply through year-end should also support the expansion, he added.
“So we hope for the best in 2H2026, but we must be prepared for any possibility,” Akmal Nasrullah told the media on Saturday.
He warned that unresolved geopolitical tensions in West Asia, especially around the Strait of Hormuz, could still pressure global oil markets and Malaysia’s growth.
Official figures show Malaysia’s economy grew 5.8% in the second quarter of 2026, up from 5.4% in the first quarter, led by stronger services and manufacturing output. The mining and quarrying sector rebounded, while construction continued to expand.
The government also expects hosting the Formula One Gulf Air Bahrain Grand Prix to boost growth, particularly in tourism. The event at Sepang International Circuit from Oct 2 to 4 will draw foreign visitors whose spending should spread benefits across small traders, the minister said.
F1 confirmed Malaysia as host on Sunday after agreements between the series, the FIA, and the Malaysian and Bahraini governments.
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