We anticipate Malaysia’s economy to grow by +5.9%yoy in 2QCY26, slightly above the +5.8% advance estimate. Domestic demand should remain an important growth anchor, on the back of stable labour market and well-contained inflation.
Growth during the quarter is also supported by external trade activity, mainly driven by demand for E&E productsRecent data suggests potential upward revision to the construction sector growth, while the services and manufacturing sectors likely growing at rates as indicated in the advance estimate.
Some downside, however, will be from the mining sector, given the more moderate growth in Jun-26Taking these indicators together, we forecast 2QCY26 GDP growth at +5.9%yoy, marginally above the +5.8% advance estimate.
The upside is expected to come mainly from construction and the stronger trade balance, while manufacturing and services should broadly track the advance readings. For 2026, we foresee Malaysia’s economy could maintain growth around +5.0% for the third consecutive year
Source: MBSB
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