Malaysia's economy grows 5.3% in 3Q26, beats expectations

KUALA LUMPUR: Malaysia's economy grew 5.3% in the third quarter of 2026 (3Q2026), moderating from 6% in the preceding quarter, according to advance estimates released by the Department of Statistics Malaysia (DOSM).

The growth came in at the upper end of Bloomberg's forecast range of 4.5% to 5.4% and exceeded UOB Global Economics & Markets Research's projection of 4.5%.

The expansion was supported by growth in the services, manufacturing and construction sectors, while agriculture rebounded and mining and quarrying contracted.

“In terms of quarter-on-quarter performance, Malaysia’s economy increased to 4.6% as compared to 1.9% in the second quarter of 2026,” it said in a statement.

DOSM said the services sector grew by 5.4%, driven mainly by wholesale and retail trade, information and communication, and finance and insurance activities.

The manufacturing sector expanded by 7.5%, supported by export-oriented industries, particularly electrical, electronic and optical products, alongside petroleum, chemical, rubber and plastic products.

Meanwhile, the construction sector recorded growth of 6%, underpinned by non-residential building projects and specialised construction activities.

The agriculture sector rebounded with a 1.3% increase, supported by higher output in the oil palm and livestock subsectors.

However, the mining and quarrying sector contracted by 4.9%, weighed down by lower crude oil and condensate production.

“For the first three quarters of 2026, Malaysia’s economy expanded by 5.5%, compared with 4.8% in the corresponding period of 2025,” it said.

DOSM said the official GDP figures for the third quarter of 2026 will be released on Nov 18, 2026.