Malaysia Expects GDP Growth to Exceed 5% for Third Consecutive Year

Malaysia is confident its economy will grow by more than 5% in 2026, marking the third consecutive year of growth above that level under the Madani government, Finance Minister II Datuk Seri Amir Hamzah Azizan said on October 29. The government’s existing full-year growth projection stands between 4.8% and 5.3%, following gross domestic product (GDP) growth of 6% in the second quarter. Preliminary estimates from the Department of Statistics Malaysia also put third-quarter growth at 5.3%.

Strong Investment, Trade and Employment Support Economic Outlook

Amir Hamzah said Malaysia’s economy had demonstrated resilience despite global uncertainty, supported by positive performance across most sectors. The unemployment rate stood at 2.9% in August, while approved investments and trade values reached record levels. He also highlighted the ringgit’s resilience and Malaysia’s improved international competitiveness ranking, which rose from 34th in 2024 to 15th in 2026.

Government Vows to Ensure Growth Benefits Ordinary Malaysians

The government aims to channel economic progress into better employment opportunities, higher-value industries and improved living standards. Federal expenditure is projected to rise to RM459.8 billion under Budget 2027, including RM83 billion for development spending. Amir Hamzah said fiscal policy would remain expansionary but responsible, with the focus on strengthening economic fundamentals while ensuring that growth translates into tangible benefits for the public.

Malaysia expects economic growth to exceed 5% in 2026, with the government pledging to turn stronger performance into better jobs and living standards.