KUALA LUMPUR, Aug 14 - Malaysia’s economy grew 6 per cent in the second quarter from a year earlier, surpassing expectations as stronger export growth and steady household spending offset risks arising from the West Asia conflict, government and central bank data showed today.
The growth was higher than the official advance estimate of 5.8 per cent, which was also the median forecast in a Reuters poll of economists, and stronger than the first-quarter expansion of 5.4 per cent.
Second-quarter growth was driven by improved performance in all sectors except agriculture, data released by the Statistics Department and Bank Negara Malaysia (BNM) showed.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said growth in 2026 was likely to be around 5 per cent, at the upper end of the central bank’s forecast range of 4 per cent to 5 per cent. The economy grew 5.2 per cent last year.
“Commercial demand is expected to remain resilient and this is driven by household spending and investment activities,” he told a press conference.
Malaysia has largely been cushioned from economic shocks arising from the West Asia conflict by firm domestic demand, steady investment and export growth.
Last month, the central bank kept its benchmark interest rate unchanged for a sixth consecutive policy meeting amid muted inflation.
Abdul Rasheed said today that inflation was expected to remain contained this year, partly due to fuel subsidies and other government assistance, although higher global commodity prices were expected to put upward pressure on prices.
The central bank considered its monetary policy stance to be “appropriate and consistent with the outlook of continued price stability and sustainable economic growth”, he said.
