What caused the mining and quarrying sector to rebound in Q2 2026?

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The natural gas sub-sector drove the rebound in Malaysia's mining and quarrying sector in Q2 2026.

Malaysia's economy demonstrated robust growth in the second quarter of 2026, expanding by 5.8 per cent. This performance was significantly bolstered by a notable recovery in the mining and quarrying sector, which recorded a substantial increase of 10.2 per cent. This rebound contrasts with the sector's contraction of 2.1 per cent in the first quarter of 2026, indicating a strong turnaround.
Natural Gas Sub-Sector as the Primary Driver

The resurgence in the mining and quarrying sector was predominantly attributed to the strong performance of its natural gas sub-sector. This specific segment experienced a significant uplift, contributing directly to the overall positive growth figures for the broader mining and quarrying industry.
Overall Economic Performance in H1 2026

For the first half of 2026, Malaysia's economy achieved a cumulative growth of 5.6 per cent, an improvement from the 4.5 per cent recorded in the corresponding period of 2025. This overall economic expansion was supported by gains across most economic sectors, with the exception of the agriculture sector.
Contributions from Other Key Sectors

While the mining and quarrying sector showed a marked rebound, the services sector continued to be a primary contributor to economic growth, expanding by 5.4 per cent. The manufacturing sector also demonstrated increased strength, growing by 7.5 per cent, largely propelled by export-oriented industries, including the production of electrical, electronic, and optical products, alongside petroleum, chemicals, rubber, and plastics products. The construction sector contributed with a moderate growth of 6.6 per cent, supported by non-residential building projects.

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What caused the mining and quarrying sector to rebound in Q2 2026?

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