KUALA LUMPUR, April 17 (Reuters) – Malaysia’s economy grew 5.3% in the first quarter from a year earlier, official advance estimates showed on Friday, moderating from its pace at the end of 2025 as activity slowed in some key sectors.
In the final quarter of 2025, gross domestic product had expanded by 6.3%, the fastest pace in three years, driven by higher domestic demand, exports and investments.Â
The rise in the January-to-March period was driven by sustained growth in the manufacturing, services and construction sectors, though momentum has slowed compared to the previous quarter, the statistics department said in a statement.Â
The mining and quarrying sector declined 1.1% in the quarter due to lower production, particularly of crude oil and natural gas.  Â
“Malaysia’s first quarter of 2026 reflects an economy that remains fundamentally resilient, even with the rising global uncertainties, particularly elevated oil prices following geopolitical tensions,” Chief Statistician Mohd Uzir Mahidin said.Â
Final first quarter figures are expected to be released on May 15.Â
Last month, the central bank slightly lifted its growth forecast for 2026 to 4% to 5%, from an earlier projection of 4% to 4.5%, supported by household spending, steady exports and tourism.Â
The economy expanded 5.2% last year, surpassing expectations as the country posted record values of trade and approved investments.Â
However, Bank Negara Malaysia has warned that supply disruptions and higher fuel prices caused by prolonged conflict in the Middle East would pose risks to its growth and inflation outlook.
Separate data released on Friday showed consumer prices rising 1.7% in March from a year earlier, matching the median forecast by analysts and ticking up from the 1.4% increase the previous month.
(Reporting by Rozanna Latiff; Editing by John Mair)
