Economy expands 5.3% in 3Q 2026

Malaysia’s economy expanded by 5.3% in the third quarter of 2026 (3Q 2026) after registering 6.0% growth in the preceding quarter, according to the statistics department.

Its advance gross domestic product (GDP) estimates for 3Q 2026 report said all economic sectors, except mining and quarrying, underpinned performance, while mining and quarrying contracted.

“Cumulatively, for the first three quarters of 2026, Malaysia’s economy registered growth of 5.5%, higher than 4.8% in the corresponding period in 2025,” it said in a statement today.

The services sector remained the main impetus of economic growth in 3Q 2026, recording a 5.4% increase (2Q 2026: 5.9%), driven by the wholesale and retail trade, information and communication, and finance and insurance sub-sectors.

The manufacturing sector strengthened to 7.5% (2Q 2026: 7.3%), backed by export-oriented industries, particularly electrical, electronic and optical products and petroleum, chemicals, rubber and plastics products.

“The construction sector grew by 6.0% against 6.5% in the preceding quarter, supported by the non-residential buildings sub-sector, particularly data centre construction projects, and specialised construction activities.

“The agriculture sector rebounded to 1.3% (2Q 2026: -3.7%), driven by the oil palm and livestock sub-sectors,” it said.

The mining and quarrying sector, however, contracted by 4.9% (2Q 2026: 9.2%) due to a decline in the crude oil and condensate sub-sector.

The department said the preliminary GDP, which provides a detailed and comprehensive analysis of economic performance for 3Q 2026, will be released on Nov 18, 2026.

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