Malaysia’s Economy Grows 5.4% In Q1 2026, Supported By Domestic Demand

Malaysia’s economy expanded by 5.4% in the first quarter of 2026, slightly above the earlier advance estimate of 5.3%, according to Bank Negara Malaysia. The growth was supported by resilient household spending, continued investment activity and steady export performance, showing that domestic demand remains an important buffer for the country’s economy. 📈
Private consumption grew 4.7%, while private investment rose 7.8%. The services sector remained a key contributor with 5.6% growth, and manufacturing expanded 5.9%, supported by stronger electrical and electronics production linked to demand for AI and data centre components. Malaysia also recorded a wider current account surplus of RM15.2 billion in the quarter. 💼
BNM said Malaysia may still face external headwinds from geopolitical tensions, energy prices and supply-chain uncertainty, but the economy is expected to remain resilient in 2026. Growth is projected between 4% and 5%, backed by steady domestic demand, exports and ongoing national master plan projects. 🌏