The Malaysian economy grew 5.4% in the first quarter of 2026, supported by the strong performance of the services and manufacturing sectors, according to Economy Minister Datuk Akmal Nasrullah Mohd Nasir.
Investment momentum also remained encouraging as Malaysia recorded RM92.8 billion in approved investments in the same period. The investments are expected to create more than 50,000 job opportunities for the people.
In the first five months of this year, exports from the electrical and electronics (E&E) sector increased by 39.7% to RM382.9 billion, contributing 48.2% of the country's total exports. This performance solidifies the E&E industry's position as a key driver of the Malaysian economy.
According to Akmal, the semiconductor sector should no longer function as a mere production center. Instead, the industry needs to shift to high-value activities such as innovation, technology development, increased productivity and the production of highly skilled talent.
In support of this agenda, Malaysia is continuing its strategic partnership with global chip design company Arm to accelerate the development of the local semiconductor industry.
The partnership provides Malaysian companies with access to world-class chip design technology, thereby accelerating the research and development process.
To date, six Arm technology licenses have been granted to four local companies, while 1,530 participants have undergone training under the semiconductor talent development programme this year. The initiative targets 10,000 skilled workers to be trained over four years.
The government stressed that the main goal is not just to ensure Malaysia remains in the global semiconductor supply chain, but to enhance the ability of local companies to produce high-value technologies and retain more economic value in the country.
This development comes at a time when the global economy is expected to grow by around 3% in 2026, with the outlook still affected by geopolitical tensions, trade uncertainties and global economic policies.
Malaysia, however, is seen as well-positioned to capitalise on the growth of the semiconductor and artificial intelligence (AI) industries.
