Malaysia’s GDP growth slows to 5.3% in Q3 as mining contracts

MALAYSIA’S economic growth is estimated to have slowed to 5.3% in the third quarter of 2026 from 6.0% in the preceding quarter, with a contraction in mining and quarrying weighing on overall performance.

The Department of Statistics Malaysia (DOSM) said growth remained positive across almost all economic sectors, except mining and quarrying, while cumulative growth for the first nine months reached 5.5%, compared with 4.8% in the same period last year.

The services sector remained the main growth driver, expanding 5.4%, supported by wholesale and retail trade, information and communications, and financial and insurance activities.

Manufacturing strengthened to 7.5% from 7.3% in the second quarter, driven by export-oriented industries, particularly electrical, electronic and optical products, as well as petroleum, chemical, rubber and plastic products.

Construction grew 6.0%, easing from 6.5% in the previous quarter, supported by non-residential building activity, including data centre projects, and specialised construction activities.

Agriculture returned to growth, expanding 1.3% after contracting 3.7% in the second quarter, driven by oil palm and livestock activities.

Mining and quarrying, however, contracted 4.9% after growing 9.2% in the previous quarter, reflecting a decline in crude oil and condensate production. - October 16, 2026