Malaysia expects GDP growth to exceed 5% in 2026

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Malaysia GDP growth in 2026

Highlights

The Malaysian government forecasts 2026 GDP growth of 4.8% to 5.3%, and is confident it will exceed 5.0% despite global uncertainty.
GDP grew 6.0% in the second quarter of 2026 and is estimated to have grown 5.3% in the third quarter, bringing cumulative growth from January to September 2026 to 5.5%.
The unemployment rate remained low at 2.9% in August, approved investment and trade reached record highs, and the country’s competitiveness ranking rose to 15th in two years.

This article was translated from the original. Read the original version by our correspondent here.

Growth forecast and supporting official data

As reported by The Edge Malaysia, Second Finance Minister Datuk Seri Amir Hamzah Azizan said 2026 GDP growth is forecast to range from 4.8% to 5.3%, and the government is confident that annual growth will exceed 5.0%. He made the remarks while winding up the debate on the Supply Bill 2027 at the policy stage for the Ministry of Finance in the Dewan Rakyat on Thursday.

He said GDP grew 6.0% in the second quarter of 2026. In its latest advance GDP estimates, the Department of Statistics Malaysia estimated that the Malaysian economy grew 5.3% in the third quarter of 2026, following growth of 6.0% in the previous quarter.

DOSM said growth was supported by positive performance across all economic sectors except mining and quarrying, which contracted. Cumulatively, the Malaysian economy grew 5.5% in the first three quarters of 2026, up from 4.8% over the same period in 2025.

Amir Hamzah also said growth in 2027 is forecast to range from 4.2% to 5.2%. The forecast indicates that the government expects economic momentum to remain resilient despite global uncertainty.

Implications for employment, investment and competitiveness

The unemployment rate remained low at 2.9% in August, while the value of approved investments and trade reached a record high, Amir Hamzah said. He also said the ringgit remained resilient and the country’s competitiveness ranking improved significantly, rising from 34th place in 2024 to 15th within two years.

He said these achievements show that the national economy is on the right track, with strong fundamentals despite an uncertain external environment. The government, he said, is mobilising the capabilities and contributions of all parties to advance the country’s development agenda under the Ekonomi MADANI framework.

The policy aims to develop high-value economic sectors and master the latest technologies to create better jobs and improve people’s well-being. At the same time, he said, the country aims to remain committed to good governance, strong national unity, and the preservation of its national treasures and heritage.

In our previous coverage of market resilience and investment flows into Malaysia, we explained how the country remains an attractive investment destination amid global uncertainty. The article highlighted the stability of local equities and expectations that the technology and financial sectors would be key drivers of foreign fund inflows through digital infrastructure and innovation investments.

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