Malaysia’s economy grew 6.0 % in the second quarter of 2026, beating forecasts with real GDP up 5.7 % in the first half of the year. Chip exports surged 82.4 % year-on-year in the first eight months while electrical and electronics exports jumped 168.5 % in the second quarter. The World Bank and IMF both raised their 2026 growth forecasts to 5.1 % and 5.2 % respectively, with Malaysia’s Finance Ministry projecting a 44.3 % increase in E&E shipments. The country is strengthening its role in the chip supply chain as an assembly and packaging hub while expanding data-centre capacity, though it remains exposed to the cyclical volatility of AI capital spending by major tech firms.
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