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Economy Maintains Strong Momentum With 6 Pct 2Q Growth -- Akmal Nasrullah

KUALA LUMPUR, Aug 14 (Bernama) -- A six per cent growth in the second quarter (2Q) of 2026 illustrates that Malaysia’s economy continues to have strong momentum despite facing a challenging global environment, says Minister of Economy Akmal Nasrullah Mohd Nasir.

However, he highlighted that economic success cannot be measured by growth figures alone.

“What is more important are better job opportunities, higher income, and the purchasing power of the people,” he said in a statement today.

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According to the Ministry of Economy, Malaysia’s Gross Domestic Product (GDP) grew by 6.0 per cent in 2Q 2026, up from 5.4 per cent in 1Q 2026.

This performance resulted in 5.7 per cent growth in the first half (1H) of 2026, higher than 4.5 per cent in the previous corresponding period.

The Ministry of Economy said the growth was supported by strong domestic demand, encouraging performance in electrical and electronics (E&E) exports and expansion in the services and manufacturing sectors.

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It said the labour market remains resilient, while price pressures remain controlled, with 2Q inflation at 1.9 per cent.

“This economic performance was achieved even as the global economy continues to face uncertainty, including the impact of West Asia’s geopolitical tensions on energy prices, logistics costs, and supply chains.

“Malaysia’s diversified economic structure and strong domestic demand remain a cushion against external pressures,” it added.

Meanwhile, the Ministry of Economy said the government, through the National Economic Action Council (MTEN), will continue to monitor economic developments and take appropriate measures to ensure that the impact of external developments on people and businesses can be effectively addressed.

Akmal Nasrullah said MTEN’s focus is on four main measures, namely, ensuring supply, extending the supply period, curbing price increases, and capitalising on economic opportunities.

“The priority is to ensure a steady supply, keep prices under control, and enable continued business activity, while also capitalising on new opportunities arising from economic changes and global supply chains,” he said.

To strengthen economic resilience, the ministry said that the government will continue to diversify sources of strategic supply, strengthen trade ties, and enhance domestic industrial capability.

“Cooperation with major trading partners, including Australia, China, and Japan, will also be strengthened to reduce the risk of supply chain disruptions.

“Economic growth in 2H 2026 is expected to remain supported by domestic demand, a stable labour market, household spending, tourism activities, and global demand for E&E products,” it said.

The Ministry of Economy said the government will continue to monitor external risks and ensure that policies and intervention measures are implemented in a targeted manner.

“In the medium- to long-term, the implementation of the 13th Malaysia Plan (13MP) will be accelerated, with a focus on increasing productivity, high-quality investments, talent development, and diversifying growth sources.

“The government’s objective is to ensure that the country’s economic growth remains sustainable and resilient, with benefits that can be translated into higher incomes, better economic opportunities, and improved welfare,” it added.

-- BERNAMA