Malaysia Economic Growth Moderates to 5.3% in Third Quarter of 2026

Malaysia's economy grew 5.3% in Q3 2026, slowing from 6% in the previous quarter. Discover the sector performance driving this latest GDP update.

Editorial Desk

October 17, 2026 One Min Read

POLICY WIRE — Kuala Lumpur, Malaysia — Malaysia’s economy recorded a 5.3% expansion during the third quarter of 2026 compared to the same period last year, according to advance estimates published by the Department of Statistics Malaysia (DOSM) on Friday, Oct 16.

This latest figure represents a moderation in growth, following the 6.0% expansion observed in the second quarter of 2026.

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Sector-specific data highlights varied performance across the national economy. The manufacturing sector led with a 7.5% increase, bolstered by export-oriented electrical products, while the services sector grew by 5.4%, supported by strength in wholesale and retail trade, finance, insurance, and information and communication.

The construction sector also contributed to the positive trend with a 6.0% expansion. Conversely, the mining and quarrying sector faced a downturn, contracting by 4.9% during the quarter.

The Department of Statistics Malaysia is scheduled to release more comprehensive preliminary figures on November 18. Reporting by Policy-Wire (PW)

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