Malaysia economy grows 5.3 percent in Q3 while EU summit concludes without budget breakthrough

Malaysia's economy expanded by 5.3 percent year on year in the third quarter of 2026, according to advance estimates released on Friday by the Department of Statistics Malaysia. This growth slowed from 6 percent in the preceding quarter. Meanwhile, a separate two-day European Union summit concluded in Brussels on Friday without reaching a breakthrough on the bloc's long-enduring budget.

The Malaysian economic expansion during the third quarter was supported by positive performances across most sectors, with the services sector remaining the main driver after growing 5.4 percent. Manufacturing strength increased to 7.5 percent, construction eased to 6 percent, and agriculture rebounded with 1.3 percent growth. However, the mining and quarrying sector contracted by 4.9 percent. For the first nine months of the year, the Malaysian economy expanded by 5.5 percent, accelerating from 4.8 percent during the same period a year earlier. In Europe, the summit faced challenges regarding a proposed 2-trillion-euro budget for 2028-2034, a growing security bill, and an energy crisis that tested the bloc's economic resilience.

European Council President Antonio Costa faces the task of seeking a budget agreement by the end of the year amid divisions among member states. Fiscal pressures in Europe were further compounded by security costs, ongoing discussions surrounding Ukrainian financial assistance, and rising energy import bills stemming from the Middle East conflict.