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BUSINESS • 10/08/2026 06:37 PM

Malaysia's Positive Economic Growth Reflects Country's Resilience – Academic

KUALA LUMPUR, Aug 10 (Bernama) -- The preliminary estimate of Malaysia's gross domestic product (GDP), which grew by 5.8 per cent in the second quarter of 2026, is a positive development that reflects the resilience of the country's economy amid an uncertain global environment, said an academic.

Associate Professor Dr Abdul Rahim Ridzuan of the Faculty of Business and Management, Universiti Teknologi MARA (UiTM), said that the growth was not only contributed by one sector, but was driven by various economic activities, including the services and manufacturing sectors, which remain among the important contributors to the country's economic growth.

"However, we cannot view the GDP figures solely as evidence that our economy is truly strong. We need to look at the quality of the growth.

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"For example, is the growth supported by an increase in productivity? Does the incoming investment result in new technology and enhance the capabilities of local companies? Are the jobs created high-value positions offering better salaries? These are some of the questions we need to consider from the perspective of growth quality," he said.

He said this while appearing as a guest on the programme Fokus15 produced by Bernama TV titled RCI Tabung Haji: Measuring the Cost of Confidence in Today's Economy.

According to the Department of Statistics Malaysia (DOSM), Malaysia's economy is estimated to have grown by 5.8 per cent in the second quarter of 2026, up from 5.4 per cent in the first quarter of 2026, supported by growth in almost all economic sectors except agriculture, which recorded a contraction.

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Bank Negara Malaysia (BNM) is scheduled to announce the official second-quarter GDP data for Malaysia this Friday.

Further commenting, Abdul Rahim said that an important measure in assessing the success of the economic agenda is the extent to which incoming investments can generate added value for the Malaysian economy.

For example, he said if large investments come in but local companies still play the role of low-cost suppliers, the economic spillover that Malaysia receives would not reach its full potential.

"But if the investment brings in technology, enhances workers' skills, and opens opportunities for local vendors, it will help more companies in Malaysia become more competitive internationally and have a greater economic impact," he added.

-- BERNAMA

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