Malaysia Economy Grows 5.3 Percent in Third Quarter
Malaysia reported a 5.3 percent year-on-year economic growth in the third quarter, driven by manufacturing and AI-linked construction projects.
The Department of Statistics Malaysia reported that the national economy grew 5.3 percent year-on-year in the third quarter, according to advance estimates released October 16. This figure marks a slowdown from the 6 percent expansion recorded during the second quarter.
Growth was primarily driven by the manufacturing sector, which rose 7.5 percent due to export-oriented industries, and the services sector, which increased 5.4 percent. The construction sector grew 6 percent, supported by data center development projects linked to a global boom in artificial intelligence infrastructure. In contrast, the mining and quarrying sector declined 4.9 percent.
Following these trends, the government raised its 2026 growth projections to a range of 4.8 percent to 5.3 percent and forecasted 2027 growth between 4.2 percent and 5.2 percent. Bank Negara Malaysia has maintained the main policy rate at 2.75 percent since May of the previous year.
