PUTRAJAYA, Aug 18 — Malaysia's impressive economic growth in the first half of the year, which exceeded Bank Negara Malaysia's 2026 gross domestic product (GDP) projection of four to five per cent, demonstrates the resilience of the country's economy.
Finance Minister II Datuk Seri Amir Hamzah Azizan said GDP grew at a rate of 5.4 per cent in the first quarter of this year and six per cent in the second quarter, resulting in an overall economic growth of 5.7 per cent in the first half of 2026.
"In fact, the International Monetary Fund also raised Malaysia's GDP forecast from 4.3 per cent in January 2026 to 4.7 per cent in April 2026.
"Although the growth projections for other countries have declined, Malaysia's projection has been maintained in the latest publication in July, and despite facing global uncertainties, the country's economic fundamentals remain resilient," he said in his speech during the 2027 Budget Engagement Session today.
Amir noted that the ringgit remained stable throughout the first seven months of this year despite the uncertain global environment. Meanwhile, approved investments in the first quarter of 2026 stood at RM92.8 billion.
"Malaysia jumped eight places to 15th position in the 2026 World Competitiveness Index from 23rd place last year.
"Moody's Ratings has maintained the country's credit rating at A3, with a 'Stable' outlook, and Malaysia is expected to outperform the GDP growth of similarly rated countries," he said.
Amir added that although this achievement is commendable, it becomes meaningless if the people are still struggling with the burden of the cost of living.
Despite inflation rising to 1.8 per cent in the first seven months of this year following the rise in world crude oil prices due to the West Asian conflict, the government continues to make efforts to ease the burden of people's living costs.
He said the steps included increasing the allocation for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah cash aids from RM10 billion in 2024 to RM15 billion, making it the largest targeted assistance allocation in history.
This includes distributing the SARA Appreciation to 22 million Malaysians aged 18 and above, helping to maintain the momentum of domestic purchasing power.
The government is also implementing a more targeted diesel subsidy through the BUDI Madani Diesel mechanism starting July 1 this year.
Using MyKad, eligible Malaysians can enjoy subsidised diesel at RM2.10 per litre, with a basic limit of up to 200 litres per month; owners of private diesel vehicles such as pickups and Sport Utility Vehicles who meet the criteria can apply for an additional 100 litres per month.
This step ensures subsidies reach those who truly need them while reducing leakage. The government is maintaining the RON95 subsidy at RM1.99 per litre for 200 litres of monthly usage through the BUDI Madani RON95 programme.
Themed "Malaysia MADANI: Reaching for the Skies, Rooted in the Earth" (Menggapai di Langit, Mengakar di Bumi), the 2027 Budget is scheduled to be tabled in Parliament on October 9.
The engagement session was also attended by Deputy Finance Minister Liew Chin Tong, Treasury Secretary-General Tan Sri Johan Mahmood Merican, Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, the secretaries-general of various ministries, heads of service, senior government officials, representatives from industries, associations, and NGOs, as well as economic figures and scholars.
