Key facts
- Third-quarter GDP grew 5.3% year-on-year.
- Services sector expanded 5.4%, manufacturing grew 7.5%.
- Construction sector rose 6%, supported by data center development.
- Mining and quarrying declined 4.9%.
Malaysia's economy expanded 5.3% from a year earlier in the third quarter, a slowdown from the 6% growth recorded in the second quarter, according to official advance estimates released on Friday. The expansion was broad-based, with growth in all sectors except mining and quarrying, which saw a 4.9% decline. The services sector grew by 5.4%, while manufacturing activity increased by 7.5%, supported by export-oriented industries. The construction sector also saw a 6% rise, partly due to data center development projects. Malaysia has benefited from a global surge in artificial intelligence infrastructure demand, boosting its tech products and semiconductors. The government recently revised its 2026 growth forecast upwards, expecting expansion near the upper end of its 4.8% to 5.3% range, and anticipates 4.2% to 5.2% growth in 2027. The central bank has maintained its main policy rate at 2.75% since May of the previous year.