Malaysia GDP Growth Forecast Rises to 5.8 Percent

Economists forecast that Malaysia's economic growth accelerated to 5.8 percent year-on-year in the second quarter of 2026, up from 5.4 percent in the first quarter. According to a Reuters poll of 21 economists, this growth is primarily driven by a 45.4 percent surge in June exports, marking the fastest growth since August 2022.

Bank Negara Malaysia expects the overall economy to grow between 4 percent and 5 percent for the full year. The central bank maintained the benchmark interest rate at 2.75 percent, noting that fiscal consumption measures and resilient credit card spending have supported employment conditions, particularly for lower-income groups.

Domestic demand remains strong, while the rapid expansion of semiconductor demand and data center capacity has attracted significant investment from European and United States technology firms diversifying their operations away from China. Official GDP data is scheduled for release on August 14.