Malaysia’s economy grew 5.3% year-on-year in the third quarter of 2026, slowing from 6.0% in the previous quarter and marking the weakest pace in a year, according to preliminary estimates. Mining and quarrying contracted by 4.9%, a sharp reversal from 9.2% growth in Q2, reflecting lower crude oil and condensate output. Growth also softened in services (5.4% vs 5.9% in Q2) and construction (6.0% vs 6.5%).
By contrast, agriculture returned to growth, expanding 1.3% after a 3.7% contraction, supported by higher production in the oil palm and livestock subsectors. Manufacturing growth edged up to 7.5% from 7.3%, underpinned by export-oriented industries, particularly electrical, electronic and optical products, as well as petroleum, chemical, rubber and plastic products.
Over the first three quarters of 2026, Malaysia’s economy expanded by 5.5%, compared with 4.8% in the same period a year earlier.
