Malaysia's economy grows 5.3pct in Q3, advance estimate shows

KUALA LUMPUR: Malaysia's gross domestic product (GDP) is estimated to have grown 5.3 per cent in the third quarter of 2026, slightly higher than the 5.2 per cent recorded a year earlier.

The advance estimate released by the Statistics Department showed that growth moderated from six per cent in the preceding quarter, with all sectors expanding except mining and quarrying.

For the first nine months of 2026, the economy grew 5.5 per cent, compared with 4.8 per cent in the corresponding period last year.

The services sector remained the main growth driver, expanding 5.4 per cent, supported by wholesale and retail trade, information and communication, as well as finance and insurance activities.

Manufacturing growth accelerated to 7.5 per cent from 7.3 per cent in the preceding quarter, driven by export-oriented industries, particularly electrical, electronic and optical products, as well as petroleum, chemicals, rubber and plastics products.

Construction growth eased to six per cent from 6.5 per cent, supported by non-residential projects, particularly data centres, and specialised construction works.

The agriculture sector rebounded 1.3 per cent after contracting 3.7 per cent in the preceding quarter, driven by oil palm and livestock activities.

In contrast, the mining and quarrying sector contracted 4.9 per cent, reversing the 9.2 per cent expansion in the second quarter, following a decline in crude oil and condensate production.

Bank Negara Malaysia is scheduled to release the official third-quarter GDP figures on Nov 18.