Malaysia’s economy grows 5.3pc in third quarter, slower than previous quarter

The Department of Statistics Malaysia said all economic sectors except mining and quarrying supported economic growth in the third quarter of 2026. — Picture by Choo Choy May

First Published: Friday, 16 Oct 2026 12:33 PM MYT

KUALA LUMPUR, Oct 16 — Malaysia’s economy expanded by 5.3 per cent in the third quarter of 2026 (3Q 2026), after registering 6.0 per cent growth in the preceding quarter, according to the Department of Statistics Malaysia (DOSM).

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 per cent, higher than 4.8 per cent in 2025’s corresponding period,” it said in a statement today.

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

The department said the manufacturing sector strengthened to 7.5 per cent (2Q 2026: 7.3 per cent), 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 per cent against 6.5 per cent 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 per cent (2Q 2026: -3.7 per cent), driven by oil palm and livestock sub-sectors,” it said.

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

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