Malaysia GDP Growth Likely Eased to 5.3 Percent
Economists expect Malaysia's annual growth to slow from the previous quarter's high while remaining resilient through strong household consumption and semiconductor exports. Official data due Friday is expected to align with preliminary estimates despite a contraction in the mining sector.
Malaysia likely saw economic growth slow to 5.3% in the first quarter of 2026 as expansion normalized. The figure follows a 6.3% expansion in the final quarter of 2025, according to a Reuters poll of 17 economists conducted May 6–12. Domestic consumption and the global semiconductor cycle are key factors for offsetting regional geopolitical risks.
### Subsidies and Semiconductors Drive Resilience Household spending remains a primary engine for the economy, supported by ongoing fuel subsidies that protect consumer cash flow. Exports also provided a tailwind during the January-March period. OCBC Bank senior ASEAN economist Lavanya Venkateswaran said the global semiconductor upcycle is further supporting the growth trajectory.