Bank Negara Malaysia published its second-quarter assessment, reporting that Malaysia’s economy grew 6% year over year, up from 5.4% in the first quarter, and 2.5% on a seasonally adjusted quarterly basis. Growth was driven by domestic demand, investment and stronger exports, particularly electrical and electronics products supported by artificial intelligence-related demand, information and communication technology services, liquefied natural gas and other manufactured goods. Headline inflation rose to 1.9% from 1.6% as the Middle East conflict increased external cost pressures and fuel prices, while core inflation eased to 1.9% from 2.1%. Private non-financial sector credit growth accelerated to 6.4%, supported by corporate bonds and business loans, while the ringgit remained broadly stable against major trading-partner currencies. Bank Negara Malaysia expects 2026 growth to remain within its 4% to 5% forecast range, with recent developments pointing to expansion around 5%. Headline inflation is projected to average 1.5% to 2.5%, with targeted fuel subsidies and stable demand expected to limit the domestic pass-through of higher global costs.
Bank Negara Malaysia2026-08-14
Bank Negara Malaysia reports 6% second-quarter growth, sees 2026 expansion around 5%
Bank Negara Malaysia reported that the economy grew 6% in the second quarter, supported by domestic demand, investment and technology-related exports. It expects 2026 growth around 5%, within its 4% to 5% forecast range. Headline inflation is projected at 1.5% to 2.5% for the year despite higher external cost pressures.