KUALA LUMPUR (Aug 14): Malaysia’s current account surplus fell to RM10.8 billion in the second quarter of 2026 (2Q2026), well below economists’ expectations of a rise in the surplus.
A Bloomberg survey had expected the surplus to widen to RM24.9 billion.
The decline was mainly due to weaker services and investment income, despite stronger electrical and electronics (E&E) exports.
The current account surplus was equivalent to 2% of gross domestic product (GDP), compared with RM15.2 billion or 3% of GDP in the preceding quarter.
Malaysia’s goods surplus widened to RM40.7 billion from RM33.6 billion, as manufacturing exports grew faster than imports.
“This was mainly contributed by the surging demand for E&E products, driven by ongoing AI and data centre expansion,” chief statistician Siti Asiah Ahmad said at a press conference to announce the country’s second-quarter GDP figures on Friday.
The services account, however, slipped into a RM700 million deficit from a RM6.4 billion surplus in 1Q2026, mainly due to higher payments for business services from abroad, despite steady tourism and stronger ICT services exports.
Meanwhile, the primary income deficit widened to RM27.2 billion from RM20.9 billion, reflecting higher profits earned by foreign-owned companies operating in Malaysia.
The primary income account broadly captures income earned from investments, including profits and dividends.
The secondary income deficit, which includes transfers such as remittances, narrowed to RM2.1 billion from RM4 billion.
Separately, Malaysia recorded net foreign direct investment (FDI) inflows of RM7.4 billion in 2Q2026, down from RM22.8 billion in the preceding quarter.
The inflows were supported by higher reinvested earnings and fresh equity injections from foreign investors, but were partly offset by outflows through debt instruments.
Siti Asiah said FDI was channelled largely into the services sector, particularly ICT and professional and technical activities, with the investments coming mainly from China, Hong Kong and Singapore.
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