Summary

  • GDP expands 5.8% in Q2 2026.
  • Inflation slows to 1.9% in June.
  • Manufacturing and mining drive growth.
  • Transport costs ease while insurance rises.

KUALA LUMPUR, July 18 — Department of Statistics Malaysia (DOSM) reported Malaysia’s economy expanded 5.8%in the second quarter of 2026.

Up from 5.4% in the previous quarter, driven mainly by the manufacturing, mining and services sectors. Meanwhile, June inflation eased to 1.9% from 2.0% in May.

Largely due to slower transport price increases. However, insurance and financial services recorded the highest inflation at 5.7%, while Malaysia’s economy grew 5.6% in the first half of 2026.