Malaysia's economy grew by 5.8% in the second quarter of 2026, surpassing the 5.4% growth recorded in the first quarter. This robust performance was driven by strong growth across most economic sectors, except for agriculture, which contracted during the period.
The services sector remained the primary contributor to this growth, expanding by 5.4%. This was bolstered by increased activity in wholesale and retail trade, information and communication, and transportation and storage. The manufacturing sector also saw significant improvement, growing by 7.5%, up from 5.9% in the previous quarter. This acceleration was largely due to higher production in electrical, electronic, and optical products, as well as petroleum, chemical, rubber, and plastic products.
The mining and quarrying sector rebounded strongly, recording a 10.2% growth after a 2.1% contraction in the first quarter. This resurgence was primarily driven by increased natural gas production. The construction sector experienced moderate growth of 6.6%, supported by non-residential building projects, particularly data centers.
In contrast, the agriculture sector contracted by 3.7%, a significant decline from the 2.6% growth seen in the first quarter. This downturn was mainly due to weaker performance in the oil palm and fishing sub-sectors.
Overall, Malaysia's economy expanded by 5.6% in the first half of 2026, compared to 4.5% in the same period in 2025. This indicates a positive economic trajectory, with growth across various sectors contributing to the nation's economic resilience.