State socioeconomic performance remain stable in first quarter of 2026

21 May 2026, 3:04 PM
State socioeconomic performance remain stable in first quarter of 2026

KUALA LUMPUR, May 21 — The socio-economic performance of several states appeared stable in the First Quarter of 2026 (Q1 2026), supported by controlled inflation, a stable labour market, positive business sentiment, and increasing population growth.

According to the State Socio-Economic Indicators report published by the Malaysian Statistics Department (DOSM) today, the Federal Territories continued to maintain resilient socio-economic performance, driven by sustainable economic activities, a stable labour market, and controlled price movements.

Chief Statistician Datuk Seri Mohd Uzir Mahidin said Kuala Lumpur continued to strengthen its position as the country's main economic and commercial centre, supported by continuous economic activities and resilient labour market conditions with a labour force of 1.21 million people with a labour force participation rate (LFPR) of 76.0 per cent, while the unemployment rate remained stable at 3.4 per cent.

Putrajaya continued to show stable socio-economic performance as the country's administrative centre, supported by an active labour market and positive business prospects, while Labuan, the performance was supported by resilient business activities and industrial performance.

In Melaka, the state showed stable socio-economic performance with a resilient labour market, positive business sentiment and an increasing population growth rate.

“The labour force recorded 525.4 thousand people with the LFPR at 69.8 percent while the number of employed people remained at 514.7 thousand people with the unemployment rate staying low at two per cent,” said DOSM.

Its expected net trade balance jumped to +3.1 per cent for January to June 2026 compared to -5.8 per cent in the previous quarter, while the capacity utilization of the manufacturing sector industry remained stable at 87.7 per cent.

From a demographic perspective, Melaka’s population increased to 1.057 million people with 2,778 live births and 1,585 deaths recorded in the same period.

In Kelantan, the state recorded stable socio-economic performance with controlled inflation, a stable labour market and increasing population growth despite more cautious business sentiment.

DOSM said that its Consumer Price Index increased to 0.7 per cent in March compared to 0.2 percent in February.

The number of employed people in Kelantan also increased to 710,500 people compared to 708,100 people in the fourth quarter of 2025, but the net balance of business expectations recorded -4.4 per cent compared to -3.9 per cent in the previous quarter.

In Pahang, the socio-economic performance remained stable with rising inflation, a strong labour market and positive business sentiment with the number of labour force recorded at 772,200 people with a LFPR of 65.3 per cent.

Its population was recorded at 1.69 million in Q1 2026 with 4,879 live births and 2,585 deaths recorded in the same period.

Terengganu also recorded a stable socio-economic performance in Q1 2026, reflected by positive business sentiment and a sustainable labour market.

"The number of labour force recorded 509,300 people, while the LFPR was at 61.3 per cent. The number of employed people recorded 493,100 people while the unemployment rate was recorded at 3.2 per cent," said the deparment.

It added that Terengganu's population increased to 1.252 million people in Q1 2026, compared to 1.251 million in the previous quarter, with 5,585 live births and 1,899 deaths recorded in the same period.

In Penang, the socio-economic performance remained stable, supported by controlled inflation, a stable labour market, positive business sentiment, and increasing population growth.

Its export value increased by 45 per cent to RM196.1 billion while imports increased by 25.3 per cent to RM100.7 billion in ST1 2026, reflecting vibrant and resilient trade activities.

"The number of labour force recorded 947,800 people with the LFPR increasing to 71.8 per cent while the number of employed population stood at 922,300 people," said DOSM.

The state's net trade balance remained positive at +7.2 per cent compared to +6.8 per cent previously, while the total population increased to 1.812 million people.

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