Malaysia's economy continues to perform strongly, recording an increase of 5.4 percent in the first quarter of this year, compared to 4.4 percent in the same period last year.
The positive achievement was recorded despite the global economy facing uncertainty following geopolitical conflicts in West Asia.
Bank Negara Malaysia Governor Abdul Rasheed said the country's economic development was driven by domestic demand that remained strong as well as the continued encouraging performance of electrical and electronics exports.
According to him, household spending was supported by positive labour market conditions with the unemployment rate remaining low in addition to targeted government policy measures.
"Investment growth was driven by the continued implementation of multi-year projects by the private and public sectors, the high realization rate of approved investments and the progress of the national master plan," he said during a press conference on the Gross Domestic Product (GDP) performance for the first quarter of 2026 on Friday.
In addition, the country's exports grew slowly due to a decline in motor vehicle sales after early purchases before the end of the import duty exemption for electric vehicles.
The manufacturing sector continued to be supported by the improving performance of the E&E industry, while the agriculture sector recorded slower growth following the return to normal palm oil production and continued replanting activities.
He said the mining and quarrying sector contracted due to lower oil and gas production, while the construction sector moderated after previously recording double-digit growth.
