Malaysia’s economy grew 5.4% year-on-year in Q1 2026, slightly above the preliminary estimate of 5.3% but down from 6.2% in the previous quarter. The deceleration was largely due to weaker mining and quarrying activity (-2.1% vs +1.4%), along with slower growth in agriculture (2.6% vs 5.7%), manufacturing (5.9% vs 6.0%), and construction (7.7% vs 10.9%). Growth in services also eased to 5.6% from 6.2%, though the sector remained the primary driver of overall expansion.
On the expenditure side, momentum softened across major components: private consumption rose 4.7% (vs 5.6% previously), government spending increased 4.1% (vs 6.6%), and fixed investment advanced 7.3% (vs 9.3%). Net exports made a positive contribution to GDP, with exports up 5.2% and imports growing at a slower 4.6%.
On a quarter-on-quarter basis, the economy was broadly flat, marking its weakest performance since Q4 2022, following an upwardly revised 1.4% expansion in the previous quarter.
