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Malaysia’s economy grew 6% year-on-year in the second quarter of 2026, surpassing the official advance estimate of 5.8% and accelerating from the 5.4% growth recorded in the first quarter.

At a press conference on the second-quarter economic performance on Friday (Aug 14), Chief Statistician Siti Asiah Ahmad said the stronger performance was driven by resilient household spending, steady income growth, policy support, increased investment and stronger exports.

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00:00In the second quarter of 2026, Malaysia's economy expanded by 6%.
00:07This was supported by higher export growth, led by E&E and oil and gas-related exports,
00:16steady household spendings and continued investment activities.
00:21On the expenditure side, the strong growth is underpinned by the strength in external sector,
00:28supported by continued expansion in domestic demand.
00:33Private consumption, which accounted for 60.3% of Malaysia's GDP,
00:40grew at 4.8%, supported by positive labour market condition,
00:48steady income growth and continued policy support.
00:52Investment growth was driven by continued structure component as well as machinery and equipment spending.
01:04Meanwhile, the government consumption was lifted by higher operating and development expenditure.
01:12On the external front, the expansion in net export was mainly driven by robust E&E-related export
01:23amid the global tax expansion, while supported by continued tourism-related activities, manufacturing and ICT services.
01:34On the supply side, growth was driven mainly by services, manufacturing and mining sectors.
01:44The services sector grew higher, underpinned by the strong performance in business-related services,
01:53in particular data centre activities, as well as improved performance in finance and insurance subsector.
02:02The manufacturing sector improved further, underpinned by stronger E&E production,
02:11amid continued demand for AI-related components, as well as rebounded in production of petroleum-related products.
02:22The mining sector rebounded on account of stronger natural gas production,
02:30following the recovery from maintenance activities in second quarter 2025.
02:38As for construction sector, growth was supported by continued special trade and non-residential activities.
02:47And the agriculture sector growth declined as oil pump production normalised, following strong yield in 2025.
03:01On the balance of payment performance, current account balance recorded a surplus of RM10.8 billion in second quarter 2026.
03:13Export of goods were strong, supported by sustained strength in manufacturing exports.
03:21This was mainly contributed by the surging demand for E&E products, driven by ongoing AI and data centre expansion.
03:32The services account, however, recorded a marginal deficit, mainly due to higher other business services payments,
03:44while travel remained a key contributor and ICT services exports strengthened.
03:53On foreign direct investment, the FDI recorded a net inflow of RM7.4 billion during the quarter.
04:03This is mainly supported by higher equity capital injection from abroad and reinvestment of earnings by foreign-owned enterprises in
04:15Malaysia.
04:15However, the inflow were partially offset by outflows in debt instruments arising from inter-company loans and trade credit activities.
04:27This FDI was channeled largely into the services sector, mainly in ICT and professional and technical subsectors.
04:40This FDI Bayern is mainly inspired by China, Hong Kong and Singapore.
04:47Facebook, Instagram, Facebook, Instagram, Instagram, Facebook, Instagram, Twitter, and Twitter.
04:49So very soon we can send this
04:55to our rouge to LinkedIn on Instagram.
04:55You
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