Malaysia's economy grows 6% in second quarter, says Akmal - The Star

KUALA LUMPUR, 14 AUGUST 2026 —

Malaysia’s GDP Growth Hits 6% in Q2 2026, Led by Strong Domestic Demand and E&E Exports

The second-quarter growth lifted Malaysia’s year-to-date GDP expansion to 5.7%, compared with 4.5% in the same period last year. The services and manufacturing sectors were key contributors, while the labour market remained resilient. Inflation stayed contained at 1.9% during the quarter.

Akmal attributed the strong performance to Malaysia’s diversified economic structure and resilient domestic demand, which helped cushion external pressures despite ongoing global uncertainties, including geopolitical tensions in the Middle East that have affected energy prices, logistics costs, and supply chains.

“Economic success cannot be measured by growth figures alone,” Akmal said in a statement. “What matters more is creating better employment opportunities, higher incomes, and greater purchasing power for the people.”

The government, through the National Economic Action Council (NEAC), will continue monitoring economic developments and implementing targeted measures to mitigate risks to households and businesses. Akmal outlined four priority areas: securing supply chains, extending supply availability, controlling price increases, and capitalising on new economic opportunities.

“Our focus is to ensure supplies remain adequate, prices are kept under control, and business activities can proceed smoothly, while leveraging new opportunities arising from shifts in the global economy and supply chains,” he said.

To enhance economic resilience, the government plans to diversify sources of strategic supplies, strengthen trade ties, and boost domestic industrial capacity. Cooperation with key trading partners, including Australia, China, and Japan, will be intensified to reduce supply chain disruptions.

Looking ahead to the second half of 2026, Akmal projected continued support for growth from domestic demand, a stable labour market, household spending, tourism activity, and global demand for E&E products. He emphasised that the government would remain vigilant against external risks and ensure policy interventions were appropriately targeted.

Over the medium to long term, Akmal said the implementation of the 13th Malaysia Plan (13MP) would be accelerated, with a focus on raising productivity, attracting high-quality investments, developing talent, and diversifying growth sources.

The latest figures underscore Malaysia’s ability to sustain economic momentum amid a challenging global environment, though policymakers remain cautious about external headwinds.