Malaysia’s economy grows 5.3pc

Business Recorder reported that Malaysia's gross domestic product grew 5.3 per cent from a year earlier in the third quarter, a slowdown from the previous three months, according to official advance estimates released on Friday. Growth in the second quarter had stood at 6 per cent. Only mining and quarrying contracted, falling 4.9 per cent, while every other economic sector recorded an increase.

Services rose 5.4 per cent and manufacturing climbed 7.5 per cent, helped by export-oriented industries, while construction grew 6 per cent with support from new data centre projects. The report also linked this to Malaysia's status as a regional data centre hub that has benefited from a global surge in artificial intelligence infrastructure, lifting demand for its technology products and semiconductors.

The government raised its 2026 growth projection for a second time this year, now expecting growth near the top of a 4.8 to 5.3 per cent range, and estimates 4.2 to 5.2 per cent growth for 2027. The central bank has kept its main policy rate at 2.75 per cent since cutting it in May last year. Final third-quarter GDP data is due on November 18.