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

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 numbers behind the beat 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. The engine was electrical and electronics goods, which the industry shorthand calls E&E. Net exports in that category jumped 168.5% in the second quarter as global appetite for AI hardware kept climbing. Semiconductors tell a similar story. Chip-related exports rose 82.4% year-on-year in the first eight months of 2026, compared with 22.6% growth the year before. The World Bank, in a revision published on October 6, said more than 70% of Malaysia’s export growth in early 2026 came from AI-related products. Forecasters scramble to catch up The World Bank lifted its ...