KUALA LUMPUR, April 17 — Malaysia’s economy is projected to grow by 5.3 per cent in the first quarter of 2026 (1Q 2026) based on advance estimates, reflecting an economy that remains fundamentally resilient, despite rising global uncertainties, particularly elevated oil prices driven by geopolitical tensions, said the Malaysian Statistics Department.
Chief Statistician Datuk Seri Mohd Uzir Mahidin said the manufacturing sector maintained positive momentum in the first two months of 2026, with output expanding by 7.3 per cent and 4.2 per cent, respectively, largely driven by export-oriented industries.
Seasonal festive spending during the Chinese New Year, alongside preparations for Ramadan and Hari Raya Aidilfitri, continued to support overall economic activities.
“This, coupled with the disbursement of Sumbangan Asas Rahmah and the second phase of civil servant salary revisions, contributed to a steady growth in distributive trade sales, which increased by 7.3 per cent in January and 5.3 per cent in February 2026,” he said in a statement today.
On the external front, trade activity remained supported by continued expansion in both domestic exports and re-export.
A review of the sectoral performance indicates a moderation in growth momentum across the five main sectors in 1Q 2026.
Uzir added that the services sector continued to anchor overall GDP growth, registering a 5.4 per cent increase (4Q 2025: 6.3 per cent).
"This sector’s performance was attributed mainly to the growth in the wholesale and retail trade sub-sector, reflecting sustained consumer spending, supported by a stable labour market, higher household income, and ongoing people-centric initiatives to stimulate household-related activities," he said.
Meanwhile, the information and communication sub-sector also contributed to the performance in the quarter, supported by rising demand for data centre and generative artificial intelligence-related activities.
The manufacturing sector recorded growth of 5.8 per cent (4Q 2025: 6.1 per cent), largely supported by strong output in electrical, electronics and optical products, vegetable and animal oils and fats, and food processing.
Uzir noted that the construction sector’s growth declined to 7.8 per cent in 1Q 2026 (4Q 2025: 11.0 per cent), supported primarily by specialised construction activities and non-residential buildings.
The agriculture sector grew 2.8 per cent (4Q 2025: 5.4 per cent), driven by growth in the oil palm and livestock sub-sectors.
Meanwhile, the mining and quarrying sector slipped to negative 1.1 per cent from 2.0 per cent growth in the preceding quarter, driven by lower production, particularly of crude oil, condensate, and natural gas.
Following these advance estimates, the preliminary GDP data, which provides a detailed and comprehensive analysis of economic performance for 1Q 2026, will be released on May 15.
