KUALA LUMPUR, Aug. 14 (Xinhua) -- Malaysia's economy expanded 6 percent year-on-year in the second quarter of 2026, accelerating from 5.4 percent in the first quarter, supported by resilient domestic demand and stronger exports, the country's central bank said on Friday.

This photo taken on Jan. 29, 2024 shows a night view near Petronas Twin Towers in Kuala Lumpur, Malaysia. (File photo: Xinhua)

Household spending was supported by steady income growth and ongoing policy measures, while investment continued to benefit from spending on structures and machinery and equipment, Bank Negara Malaysia (BNM) said in a statement.

Exports also accelerated, led by sustained strength in electrical and electronics (E&E) products and services, alongside a rebound in liquefied natural gas (LNG) and non-E&E manufacturing exports.

On the supply side, growth was driven by the services and manufacturing sectors.

On a quarter-on-quarter seasonally adjusted basis, the economy grew 2.5 percent, compared with a marginal contraction of 0.03 percent in the first quarter.

For the first half, the economy expanded by 5.7 percent, higher than the 4.5 percent growth in the corresponding period of 2025.

BNM governor Abdul Rasheed Ghaffour said the economy remained on a firm footing, with 2026 growth projected at 4 percent to 5 percent, although recent developments suggest it could be around 5 percent.

"While the outlook continues to be shaped by external developments, Malaysia is well-positioned to navigate these challenges from a position of strength and policy readiness," he noted.