Malaysia’s economy grew 5.3% year-on-year in Q1 2026, easing from 6.3% in Q4, according to preliminary estimates. The moderation was broad-based, with slower growth across most sectors. Services expanded by 5.4% (down from 6.3% in Q4), supported mainly by the wholesale and retail trade segment. The Department of Statistics Malaysia (DOSM) attributed this resilience in services to sustained consumer spending, underpinned by a stable labour market, rising incomes, and ongoing household-focused policy measures.
Manufacturing output increased by 5.8% (vs 6.1% in Q4), while construction grew 7.8% (vs 11.0%) and agriculture rose 2.8% (vs 5.4%), all indicating softer but still positive momentum. In contrast, the mining and quarrying sector contracted by 1.1%, reversing from 2.0% growth previously, largely due to lower production of crude oil, condensate, and natural gas.
Despite the overall deceleration, Chief Statistician Datuk Seri Mohd Uzir Mahidin noted that the Q1 figures reflected an economy that remains fundamentally resilient amid rising global uncertainty, particularly in the face of higher oil prices stemming from geopolitical tensions.
