Malaysia reported a real GDP growth of 5.7% year-on-year for the first half of 2026. The second quarter saw growth reach 6.0%, exceeding initial projections and rising from 4.6% in the first quarter.
The surge in electrical and electronics (E&E) goods was a primary driver, with net exports in this category jumping 168.5% in the second quarter. Semiconductor-related exports grew 82.4% year-on-year in the first eight months of 2026, compared to 22.6% in the previous year.
The World Bank reported that over 70% of Malaysia's export growth in early 2026 was linked to AI products. Consequently, the bank raised its 2026 growth forecast for the country to 5.1% from 4.4%.
The IMF projects 5.2% growth for 2026, highlighting the importance of E&E products and expanding data-center capacity. Malaysia's Finance Ministry expects annual growth between 4.8% and 5.3%.
The Finance Ministry forecasts total trade to reach RM 3.9 trillion in 2026, a 27.2% increase. Gross exports are projected to rise 31% to RM 2.11 trillion, supported by a 44.3% expected jump in E&E shipments.
