KUALA LUMPUR, Aug 14 — Bank Negara Malaysia (BNM) has said that there is no need to revise Malaysia’s 2026 gross domestic product (GDP) growth forecast at this juncture, as it remains confident that growth will likely settle around five per cent.
Governor Datuk Seri Abdul Rasheed Ghaffour said any revisions will normally happen during the Budget announcement.
"We have been experiencing growth above our expectations for the last three quarters.
"Looking at the drivers of growth, in terms of consumption, investment, exports, tourism, and the rest, all these factors that are driving growth are still there, and will continue to take us into the second half," he said during a media conference after announcing Malaysia's second-quarter (2Q) GDP growth today.
The national economy expanded by 6.0 per cent in 2Q 2026, surpassing the Malaysian Statistics Department's advance estimate of 5.8 per cent
Rasheed added that the main driver of growth has been domestic demand, with strong support from the external sector, particularly in the previous quarter.
"I would say growth has been broad-based. Even within the export sector, the support to the overall economy has been diversified, with both electrical and electronics (E&E) and non-E&E exports recording growth.
"We have also seen an increase in the information and communications technology services sector," he said.
However, Rasheed noted that there could be some adjustments to Malaysia's growth drivers going forward, given uncertainties in the global economy and geopolitical conflicts, which may weigh on growth.
Household consumption remains resilient at 4.8 pct in 2Q 2026, backed by income growth, savings and government policy support.
"If we look at consumption, the main factors supporting it are income, followed by savings, government policy support, and household borrowing.
"Borrowing is a very small driver of direct consumption," he said.
Meanwhile, the impact of El Nino on the economy would be felt with a lag and would be largely confined to the agricultural sector.
"However, it is important for businesses and households to start to prepare if things were to get worse because of El Nino and to adapt accordingly," Rasheed said.
