Malaysia's economy grows 5.3% year-on-year in Q3: Advance estimate

KUALA LUMPUR: Malaysia's economy grew 5.3 per cent from a year earlier in the third quarter, slowing from the previous three-month period, official advance estimates showed on Friday (Oct 16).

In the second quarter, gross domestic product expanded 6 per cent.

During the July to September period, growth was recorded in all economic sectors except for mining and quarrying, which declined 4.9 per cent from a year earlier, the statistics department said in a statement.

Expansion in the quarter was driven by the services sector, which rose 5.4 per cent, while manufacturing activity grew 7.5 per cent, backed by export-oriented industries, the department said.

The construction sector rose 6 per cent, supported in part by rising data centre development projects, it said.

Malaysia, a regional data centre hub, has benefited from a global boom in artificial intelligence infrastructure that has driven demand for its tech products and semiconductors.

The government last week raised 2026 growth projections for the second time this year, with the economy expected to expand close to the upper end of a 4.8 per cent to 5.3 per cent forecast range.

It estimates annual economic growth of between 4.2 per cent and 5.2 per cent in 2027.

The central bank has held its main policy rate steady since May last year, when it was cut to 2.75 per cent amid global tariff uncertainties.