Key facts
- Malaysia's Q2 GDP is expected to grow 5.8% year-on-year.
- Malaysia's Q1 GDP grew 5.4% year-on-year.
- Strong exports, particularly in electronics driven by AI demand, are supporting Malaysia's growth.
- Resilient domestic demand is supporting Malaysia's growth.
- Japanese business confidence improved in August.
- Strong semiconductor demand is benefiting Japanese manufacturers.
- Strong domestic consumption is supporting Japanese non-manufacturers.
- The Japanese manufacturers' sentiment index reached its highest level since March 2026.
Malaysia's economic growth is anticipated to have accelerated in the second quarter of the year, with Gross Domestic Product (GDP) likely expanding by 5.8% on a year-on-year basis. This projected growth rate represents an increase from the 5.4% expansion recorded in the first quarter. The primary drivers behind this acceleration are strong export performance, particularly within the electronics sector which is experiencing a surge in demand related to Artificial Intelligence (AI), and resilient domestic demand. These factors are collectively bolstering the nation's economic output.