Malaysia's Q2 GDP expands 6%, outpacing forecasts on exports and spending

Malaysia's economy expanded 6% in the second quarter compared with the same period last year, according to data released jointly by the Statistics Department and Bank Negara Malaysia on Friday. The reading surpassed both the government's advance estimate of 5.8% and the median forecast in a poll of economists, and marked an acceleration from the 5.4% growth recorded in the first quarter.

The latest figures were supported by improved performance across most sectors, with agriculture being the sole exception. Officials attributed the momentum to stronger export growth and steady household spending, which have helped insulate the Southeast Asian nation from external shocks, including tensions in the Middle East.

Bank Negara Governor Abdul Rasheed Ghaffour said commercial demand should remain resilient, underpinned by consumer spending and investment activity. He projected growth of around 5% for 2026, at the upper end of the central bank's 4% to 5% forecast range. The economy grew 5.2% last year.

On inflation, Abdul Rasheed said price pressures should stay contained this year, aided by fuel subsidies and other government support, although higher global commodity prices could exert some upward pressure. The central bank, which held its benchmark interest rate steady for a sixth consecutive meeting last month, described its current monetary policy stance as appropriate for sustaining price stability and economic growth.