Malaysia projects 4.8‑5% GDP growth in Q2 2026 as electronics exports surge

Malaysia's Department of Statistics is expected to report a gross domestic product expansion of 4.8%‑5.0% for the second quarter of 2026, with the full‑year growth forecast held at 4.6% and inflation projected at 2.0%. Analysts attribute the resilience to strong investor sentiment, foreign net buying, and opportunities in AI and US technology sectors.

The country's electrical and electronics (E&E) sector contributed 48.2% of total exports, rising 39.7% to RM382.9 billion in the first five months of 2026. The government recorded RM92.8 billion in approved investments, creating over 50,000 jobs. A strategic partnership with global semiconductor IP firm Arm provides Malaysian firms with advanced technology access and aims to train 10,000 semiconductor professionals over four years, with 1,530 participants already trained this year.