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Malaysia’s economy grows 5.3% on year in Q3, official advance estimate shows

By Thomson Reuters Oct 15, 2026 | 11:06 PM

KUALA LUMPUR, Oct 16 (Reuters) – Malaysia’s economy grew 5.3% from a year earlier in the third quarter, slowing from the previous ​three-month period, official advance estimates showed on ‌Friday.

• In the second quarter, gross domestic product expanded 6%

• During the July to September period, growth was recorded in all economic sectors except for mining ‌and ​quarrying, which declined 4.9% from ⁠a year earlier, the ⁠statistics department said in a statement

• Expansion in the quarter was driven by the services sector which rose 5.4%, while manufacturing ​activity grew 7.5%, backed by export-oriented industries, the department said

• The construction sector rose 6%, ⁠supported in part by ⁠rising data centre development projects, it ​said

• Malaysia, a regional data centre hub, has ​benefited from a global boom in artificial ‌intelligence infrastructure that has driven demand for its tech products and semiconductors

• The government last week raised 2026 growth projections for the second time ⁠this year, with the economy expected to expand close to the upper end of a 4.8% to ⁠5.3% forecast ‌range

• It estimates annual economic growth ⁠of between 4.2% and 5.2% in ​2027

• ‌The central bank has held ​its main ⁠policy rate steady since May last year, when it was cut to 2.75% amid global tariff uncertainties

• Final third-quarter GDP data will be released on November 18

(Reporting by Rozanna Latiff; Editing by ​David Stanway)