KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has stressed that the country’s economic performance in the first quarter of 2026 exceeded earlier projections, despite Malaysia facing pressure from rising oil prices triggered by the conflict in West Asia.
Anwar, who is also Finance Minister, said initial projections had assumed crude oil prices would hover around US$70 per barrel, but prices later surged beyond US$100 amid prolonged geopolitical tensions.
“In the first quarter of this year, while we were preoccupied with the Gulf war, oil prices had already crossed US$100 per barrel.
“However, alhamdulillah, our economic growth still came in higher than expected,” he said when speaking at the 2025 National Sports Awards ceremony in the capital today.
Malaysia’s economy recorded a solid 5.4 percent growth in the first quarter of 2026, surpassing the earlier forecast of 5.3 percent, driven by a mix of resilient domestic fundamentals and favorable external conditions.
The West Asia crisis since the beginning of the year has disrupted global energy markets, with the impact also being felt by oil-importing countries such as Malaysia.
However, according to Anwar, the resilience of the domestic economy, including government fiscal support and the stability of the services and manufacturing sectors — helped sustain growth momentum.
Analysts had earlier expected rising oil prices to weigh on growth, but official first-quarter figures showed Malaysia was still able to outperform initial forecasts.
Anwar said the outcome demonstrated that the country’s economic fundamentals remained strong despite external challenges. – May 19, 2026