Malaysia’s growth beats forecasts as AI chip demand powers exports

The economy cooled in the latest reading but still topped expectations, with semiconductor exports and steady domestic spending doing the heavy lifting Malaysia’s economy lost a bit of speed in its latest reading. It still cleared the bar that forecasters had set for it. The reason is the same one driving half the headlines in global markets this year: artificial intelligence. Demand for the chips and electronics that power AI systems kept Malaysian exports humming, while households and businesses at home kept spending. The first half of 2026 set a strong baseline. Real GDP grew 5.7% year-on-year through June. The second quarter did most of the work. Growth hit 6.0%, up from 4.6% in the first quarter, and came in above earlier projections.

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