Federal Territories' socioeconomic performance remains resilient in first quarter of 2026

21 May 2026, 8:32 AM
Federal Territories' socioeconomic performance remains resilient in first quarter of 2026
Federal Territories' socioeconomic performance remains resilient in first quarter of 2026
Federal Territories' socioeconomic performance remains resilient in first quarter of 2026

PUTRAJAYA, May 21 — The Federal Territories’ socioeconomic performance remained resilient in the first quarter of 2026 (Q1 2026), supported by sustainable economic activity, a stable labour market, positive business sentiment, and controlled price movements, said the Malaysian Statistics Department (DOSM).

In the Federal Territories State Socioeconomic Indicators, First Quarter 2026 report released today, Chief Statistician Datuk Seri Mohd Uzir Mahidin said the national economy continued to grow by 5.4 per cent in Q1 2026 to RM437.7 billion, compared with 6.2 per cent in the previous quarter.

“Malaysia’s economy continued to expand in the first quarter of 2026, reflecting the resilience of economic fundamentals and stable growth conditions amid a challenging global environment,” he said in a statement.

Kuala Lumpur (KL) continued to strengthen its position as the nation's main economic and commercial centre in the first quarter of 2026, supported by ongoing economic activities and resilient labour market conditions.

The labour force in the capital stood at 1.21 million people, with a labour force participation rate (LFPR) of 76 per cent, while the unemployment rate remained stable at 3.4 per cent, he added.

Uzir said that in terms of external trade, KL's exports reached RM14 billion while imports increased 4.1 per cent to RM29.7 billion, reflecting continued domestic demand and trade activity.

“Looking ahead, business sentiment remains positive with a net balance of 0.5 per cent for the January to June 2026 period, indicating continued confidence among business operators,” he said.

Consumer prices increased moderately by 2.2 per cent in March 2026, reflecting manageable inflationary pressures amid uncertainty in global commodity prices.

Meanwhile, Putrajaya continued to record a stable socioeconomic performance as Malaysia's administrative centre, with the labour force increasing to 62,900 and the highest LFPR among the Federal Territories at 79.2 per cent.

Uzir added that the unemployment rate in Putrajaya remained low at 1.3 per cent, while business expectations were highly encouraging with a net balance of 11.9 per cent, reflecting positive prospects for economic activity in the near term.

Similarly, Labuan also continued to be supported by resilient business and industrial activities, with exports amounting to RM1.3 billion and imports at RM831 million during the quarter.

The territory also recorded a labour force of 47,200 people with an LFPR of 67.1 per cent, while the unemployment rate stood at 5.1 per cent.

“Business sentiment also remained positive with a net balance of 0.7 per cent, supported by a manufacturing capacity utilisation rate of 94.4 per cent. Inflation increased to 2.4 per cent in March 2026, reflecting moderate price movements during the quarter,” he said.

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