KUALA LUMPUR (Aug 1): The government expects Malaysia’s economic performance to remain strong in the second half of 2026 (2H2026), said Minister of Economy Akmal Nasrullah Mohd Nasir.

He said government intervention measures to ensure stable oil supply through to year-end will also help sustain the country’s economic momentum.

“We have achieved 5.6% economic growth in 1H2026. Bank Negara Malaysia’s projection for 2026 still indicates growth between 4.0% and 5.0%.

“So we hope for the best in 2H2026, but we must be prepared for any possibility,” he told the media at a press conference after attending the Association of Malaysian Economics Undergraduates (AMEU) Economics Summit 2026, here on Saturday.

Akmal Nasrullah also said that Malaysia must remain vigilant regarding unresolved geopolitical developments in West Asia, particularly tensions in the Strait of Hormuz, which continue to put pressure on global oil supply.

According to the Department of Statistics Malaysia (DOSM), Malaysia’s economy grew by 5.8% in the second quarter of 2026 (2Q2026) from 5.4% in 1Q2026, driven by stronger performance in the services and manufacturing sectors.

It said the country’s economy recorded growth of 5.6% in 1H2026 compared with 4.5% in 1H2025, driven by recovery in the mining and quarrying sector, while the construction sector continued to expand.

Meanwhile, Akmal Nasrullah also said that hosting a Formula One (F1) race is expected to drive the country’s economic growth, particularly the tourism sector.

“Major events (like F1) that attract foreign visitors will contribute through the spending they make in the country.

“Moreover, if we look at the Prime Minister Datuk Seri Anwar Ibrahim’s own emphasis, it’s not only about benefitting certain segments, but the spillover should also be directed so that small traders can benefit,” he added.

Last Sunday, F1 confirmed Malaysia as the host of the Gulf Air Bahrain Grand Prix, which will take place at the Sepang International Circuit (SIC) from Oct 2 to 4, following the signing of agreements between F1, the International Automobile Federation (FIA), and the Malaysian and Bahraini governments.

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