1Q GDP Growth To Meet Initial Forecast Of 5.3 Pct, Potentially Better -- Akmal Nasrullah

KUALA LUMPUR, May 14 (Bernama) -- Economic growth for the first quarter (1Q) of this year is expected to meet the advance forecast of 5.3 per cent, if not better, said Economy Minister Akmal Nasrullah Mohd Nasir today.

The Department of Statistics Malaysia last month estimated that the economy grew by 5.3 per cent in 1Q 2026, moderating from the 6.3 per cent growth recorded in the preceding quarter.

Bank Negara Malaysia is expected to announce the economic performance for the quarter tomorrow.

Akmal Nasrullah said that regarding the forecast shared earlier, there are still several matters that have not been finalised due to slight discrepancies in the data.

“However, based on the latest data to be released tomorrow, I see our initial estimate was actually quite conservative.

“Although I am personally inclined to tone (expectations) down given the current crisis, I expect 1Q growth will not differ much from our projection and may even be better than what was estimated,” he said after launching the 32nd edition of the Malaysia Economic Monitor (MEM) report.

The report, issued by the World Bank, is themed “Raising the Ceiling, Raising the Floor: The Jobs Agenda as a Productivity Agenda.”

Asked on the country’s fiscal position, Akmal Nasrullah said that limited energy supply globally is putting pressure on oil and gas prices, and the government is focusing its efforts on maintaining a balance between reducing the fiscal deficit and protecting the people’s well-being.

“While we evaluate the extent of the impact of this crisis in terms of duration and related factors, a balance must be struck to ensure that the majority of the people continue to be protected, especially in tackling the rising cost of living and inflation.

“What also needs to be balanced is economic growth, which will require investment from the government,” he added.

Akmal Nasrullah said the government will finetune the Budi MADANI system from time to time based on current needs.

“That is why, in terms of approach, we need to ensure there is a balance in order to sustain the national economic resilience.

“The government’s next step is to improve the management of diesel subsidies. The main challenge in managing subsidies is due to a significant difference between market and subsidised prices, which ultimately attracts smuggling activities and leakages,” he said.

Commenting on the possible reduction of the BUDI RON95 quota, he clarified that there have been no discussions at the National Economic Action Council level to finalise any reduction of the monthly quota.

Asked on the country’s fuel supply position, Akmal Nasrullah said Prime Minister Datuk Seri Anwar Ibrahim would provide further clarification on the matter.

-- BERNAMA