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2026-07-17 12:06:12
[Malaysia's Q2 GDP Grows 5.8%, Exceeding Expectations and Showing Robust Expansion] 1. Preliminary estimates released by Malaysia's statistics department on Friday showed that the country's gross domestic product (GDP) grew by 5.8% year-on-year in the second quarter, higher than the 5.4% growth in the first quarter and exceeding economists' expectations of 5.1%. 2. By sector, almost all economic sectors saw growth. The service sector, which accounts for about 60% of GDP, grew by 5.4% in the second quarter, while manufacturing, which accounts for about 23% of the economy, expanded by 7.5%, and mining and quarrying grew by 10.2%. Agriculture was the only sector to contract, declining by 3.7% year-on-year. 3. Analysts at Public Investment Bank said that supported by domestic demand, household spending, service sector activity, and the implementation of investment projects, Malaysia's economic growth is expected to remain resilient in 2026, with full-year GDP growth projected at 4.6%. Private investment, including in data centers, semiconductors, and renewable energy projects, is expected to continue to provide support. 4. On the political front, a general election is likely to be held later this year or next year, earlier than the 2028 deadline. However, the possibility of an early election has gained more attention after the main coalition, the Barisan Nasional, recently performed better than expected in the Johor state election. Analysts expect the election to have a limited impact on the 2026 growth trajectory, with the market focusing more on government fiscal discipline and the implementation of key investment projects. 5. The final second-quarter GDP data is scheduled for release on August 14th.
