KUALA LUMPUR, July 17 — Malaysia’s economy expanded by 5.8 per cent in the second quarter of 2026 (Q2 2026), following the 5.4 per cent growth in the preceding quarter, according to the Department of Statistics Malaysia (DOSM).

In its Advance Gross Domestic Product (GDP) Estimates for Q2 2026 report, it said the performance was supported by growth in almost all economic sectors, except for the agriculture sector, which experienced a contraction. 

“Overall, Malaysia’s economy grew at 5.6 per cent for the first half of the year (H1 2026), compared to 4.5 per cent in H1 2025,” it said in a statement today.

DOSM said the services sector remained the main driver of economic growth during the quarter, with an increase of 5.4 per cent (Q1 2026: 5.6 per cent), boosted by the wholesale and retail trade; information and communication; and transportation and storage sub-sectors. 

The department reported that the manufacturing sector strengthened further to 7.5 per cent (Q1 2026: 5.9 per cent), driven by export-oriented industries, particularly the production of electrical, electronic and optical products, as well as petroleum, chemicals, rubber and plastics products.

“The performance of the mining and quarrying sector has also rebounded to record an increase of 10.2 per cent (Q1 2026: -2.1 per cent), driven by the natural gas sub-sector. 

“The construction sector grew moderately at 6.6 per cent (1Q 2026: 7.7 per cent), supported by the non-residential buildings sub-sector, particularly data centre construction projects and specialised construction activities,” it said.

Meanwhile, DOSM said the agriculture sector contracted by 3.7 per cent in Q2 2026 compared to a growth of 2.6 per cent in the previous quarter, following a decline in all sub-sectors, except for other agriculture and livestock.

It said the preliminary GDP, which provides a detailed and comprehensive analysis of economic performance for Q2 2026 will be released on August 14, 2026. — Bernama