KUALA LUMPUR – Malaysia’s economy grew 5.3 per cent in the first quarter of 2026 from a year earlier, official advance estimates showed on April 17, moderating from its pace at the end of 2025 as activity slowed in some key sectors.
In the final quarter of 2025, gross domestic product had expanded by 6.3 per cent, the fastest pace in three years, driven by higher domestic demand, exports and investments.
Separate data released on April 17 showed consumer prices rising 1.7 per cent in March from a year earlier, matching the median forecast by analysts and ticking up from the 1.4 per cent increase in February.
In March, Bank Negara Malaysia slightly lifted its growth forecast for 2026 to 4 per cent to 5 per cent, from an earlier projection of 4 per cent to 4.5 per cent, supported by household spending, steady exports and tourism.
However, the central bank has warned that supply disruptions and higher fuel prices caused by prolonged conflict in the Middle East would pose risks to its growth and inflation outlook.
The economy expanded 5.2 per cent in 2025, surpassing expectations as the country posted record values of trade and approved investments.
The economic growth in January-to-March 2026 was driven by sustained expansion in the manufacturing, services and construction sectors, though momentum has slowed compared to the previous quarter, the statistics department said in a statement.
The mining and quarrying sector declined 1.1 per cent in the quarter due to lower production, particularly of crude oil and natural gas.
“Malaysia’s first quarter of 2026 reflects an economy that remains fundamentally resilient, even with the rising global uncertainties, particularly elevated oil prices following geopolitical tensions,” said Mr tician Mohd Uzir Mahidin said.
Final first quarter figures are expected to be released on May 15. REUTERS
