KUALA LUMPUR, Oct 16 — Malaysia's economy expanded by 5.3 per cent year-on-year in the third quarter of 2026, slowing from the previous three-month period, according to official advance estimates released today.
Gross domestic product (GDP) had grown by 6 per cent in the second quarter.
During the July-to-September period, all economic sectors recorded growth except mining and quarrying, which contracted by 4.9 per cent year-on-year, the Department of Statistics Malaysia (DOSM) said in a statement.
The expansion was driven by the services sector, which grew by 5.4 per cent, while manufacturing rose by 7.5 per cent, supported by export-oriented industries.
The construction sector expanded by 6 per cent, partly supported by an increase in data centre development projects, the department said.
Malaysia has benefited from the global boom in artificial intelligence (AI) infrastructure, which has boosted demand for its technology products and semiconductors.
Last week, the government raised its 2026 economic growth projections for the second time this year, forecasting expansion close to the upper end of its 4.8 to 5.3 per cent range.
It also projected annual economic growth of between 4.2 and 5.2 per cent in 2027.
Meanwhile, Bank Negara Malaysia (BNM) has kept its key policy rate unchanged since May last year, when it was reduced to 2.75 per cent amid uncertainties surrounding global tariffs.
Final third-quarter GDP figures are scheduled for release on November 18.
