Anwar: Govt mindful many Malaysians, MSMEs still struggling despite Q2 GDP growth beating forecasts

KUALA LUMPUR, July 17 — Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the government remained mindful that many Malaysians and micro, small and medium enterprises (MSMEs) were still struggling, despite stronger-than-expected economic growth in the second quarter of 2026.

In a statement issued by the Finance Ministry today, Anwar said the government would remain focused on protecting the people’s well-being, sustaining economic growth and preserving fiscal responsibility amid further global uncertainty.

“The Madani government acknowledges that despite the encouraging growth figures, many people and micro, small and medium enterprises are still facing difficulties as the effects of the global crisis are also being felt domestically,” Anwar said.

“Since the outbreak of the West Asia crisis, the government has worked tirelessly to implement various measures to ease the people’s burden, secure supplies of essential goods and ensure business continuity,” he added.

His remarks came after the Department of Statistics Malaysia’s advance estimate showed gross domestic product grew by 5.8 per cent, exceeding the median forecast of 5.2 per cent in a Bloomberg survey.

The second-quarter growth was also stronger than the 5.4 per cent recorded in the preceding quarter and was driven by the services, manufacturing, mining and quarrying, and construction sectors.

Malaysia’s economy expanded by 5.6 per cent in the first half of 2026, compared with 4.5 per cent during the same period last year.

Among regional economies that have released second-quarter estimates, Malaysia’s growth exceeded Singapore’s 5.7 per cent and China’s 4.3 per cent, but trailed Vietnam’s 8.4 per cent.

The ministry said the government had provided more than RM15 billion in financing support to MSMEs and micro-entrepreneurs to help them manage higher costs and maintain operations.

It said a Crisis Management Task Force had also been working with industry players since April to identify critical supplies and secure alternative sources amid continued global supply-chain disruptions.

Malaysia’s inflation rate remained at 1.9 per cent in the second quarter, while subsidised RON95 petrol under Budi Madani RON95 was maintained at RM1.99 per litre.

DOSM is scheduled to release the preliminary second-quarter GDP figures on August 14, with the advance estimate subject to revision when more comprehensive data become available.