Malaysia’s Chief Economics Council expects the country’s economy to operate on a simple momentum in the third quarter of 2026, driven by the development of three main components but subdued by a decline in Import Semi Conductors. Despite this, the strong domestic economy and continued investment inflow will remain a backbone of the country’s economy. The Overall Index increased by 2.0 percent year-over-year, while the True Equival Valuation in the Employee Provident Fund rose 16.4 percent.
Malaysia’s economy outlook for the third quarter of this year is expected to operate on a simple momentum, reflecting global risk uncertainty and ongoing inflation pressure.
The head of the Chief Economics Council, Datuk Seri Dr. Mohd Uzir Mahidin stated that the projection was based on the performance of the Key Indicator (IP) which only increased by 0.5 percent year-over-year in March 2026 reaching 113.3 against 112.7 months earlier. He also mentioned that the long-term trend direction of the index remained below 100.
The growth of this index was driven by the development of three out of its seven main components, with the Approved Permanent Residency increased significantly by 32.3 percent. However, overall growth of the index was somewhat subdued due to a 22.6 percent decline in Import Semi Conductors, in line with slower external demand at this time, Dr. Mahidin stated in a press conference.
The performance on a month-to-month basis also recorded a marginal 0.1 percent decline, largely influenced by the decline in Import Non-Base Precious Metal and Non-Ferrous Other Metals at a rate of -0.9 percent. Despite facing various shocks and external uncertainty, the strong domestic economic activity, as well as the continued investment inflow will remain a backbone of the country’s economy.
The Overall Index (OS), which reflects the overall performance of the economy, presented a slightly more positive performance, increasing by 2.0 percent year-over-year to reach 130.4 against 127.9 months earlier, the head of the Central Economic Council said. Strong support to this growth came from the remarkable rise of the true.equ valuation in the Employee Provident Fund (EPF), followed by the increase of the Retail Trade Volume Index at 5.0 percent.
The same trend translated into the monthly OS growth at the rate of 0.8 percent, backed up by the EPF valuation which increased at the rate of 0.9 percent, he noted. ·1nother key factor is the import of electronics components to China due to a global chip short, which are found to be downwards, with a reduction of 2.6 per cent in 2024.
The issuance of intellectual property rights for goods, which contribution to the country’s IP revenue, is to a lesser degree influenced by the global economic downturn. Within halves of US 2024 if the panels are included it was around $300 million whereas intellectual property revenue in 2023 was at $160 million, as pointed out by Dr. Mohd Mezrin Wan Noor issued a recommendation that the government relax restrictions components of the chips needed for the production of vehicular and industrial electronics but only bright system and if China relaxes too.
Malaysia Economy Growth Inflation Global Risk Uncertainty Domestic Economic Activity Investment Inflow Overall Index Employee Provident Fund Intellectual Property Rights
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sabah’s forests play key carbon role: Chief MinisterHAJIJI said Sabah continues to maintain its status as a net carbon sink or carbon-negative state based on greenhouse gas inventory data and the latest reports.
Read more »
Forest Master Plan underway: Chief MinisterSOOK: The State Government, through the State Forestry Department, is drafting a dedicated Forest Master Plan to guide the management of the State’s forest resources for the next 25 years.
Read more »
Bersatu leader revives call for PN presidential council amid tensionsDr Afif Bahardin says the proposed body could provide another platform to discuss and resolve coalition issues internally.
Read more »
Penang City Council ramps up stray dog control through successful Trap-Neuter-Release programmeThe Penang Island City Council has reaffirmed its commitment to protecting animal welfare through its successful Trap-Neuter-Release programme, which has neutered over 8,400 dogs since its introduction in 2018. The programme has seen no stray dogs being put down and has instead focused on population control through collaboration with a local animal welfare organization.
Read more »