KUALA LUMPUR, May 16 – Malaysia’s economy expanded by 5.4% in the first quarter of 2026, driven largely by resilient domestic demand, steady household spending.
And sustained investment activity. Bank Negara Malaysia (BNM) Governor Abdul Rasheed Ghaffour said favourable labour market conditions.
A low unemployment rate, and targeted government policies continued to support consumer spending. Export growth also remained strong.
Particularly in electrical and electronics (E&E), alongside travel and ICT services. Despite global geopolitical uncertainties and trade disruptions.
BNM maintained its 2026 growth projection of between 4% and 5%. The central bank said Malaysia’s economic fundamentals remain solid.
With private sector investment and multi-year projects continuing to underpin growth. Inflation edged up to 1.6% during the quarter due to global cost pressures.
While the ringgit strengthened against major trading partner currencies and appreciated against the US dollar.
Credit growth also rose to 5.6%, led by stronger business financing, with additional support measures introduced to strengthen SME resilience and sustain long-term economic stability.
