Malaysia’s Services sector continued to expand strongly in the second quarter of 2026, with revenue rising 11.2 per cent year-on-year (y-o-y) to RM714.7 billion, according to the Department of Statistics Malaysia (DOSM).
The latest performance also marked a 4.9 per cent quarter-on-quarter (q-o-q) increase from the first quarter, highlighting sustained activity across the services economy.
The sector’s expansion was accompanied by continued improvements in employment, with total employment increasing 2.3 per cent y-o-y to 4.7 million persons during the quarter.
DOSM said the increase in employment was mainly supported by the Transportation and Storage and Personal and Other Services Activities subsectors, which recorded employment growth of 4.3 per cent and 3.6 per cent, respectively.
On a quarterly basis, employment in the Services sector edged up 0.2 per cent, equivalent to an additional 11,600 persons.
The Services sector strengthened in the second quarter of 2026, supported by resilient domestic demand and stronger trade activity.
Higher household spending and mobility during festive celebrations and the mid-year school holidays translated into increased activity in Wholesale & Retail Trade, Food & Beverage, Accommodation, and Transportation & Storage, with positive spillovers to related consumer and tourism services. At the same time, financing and insurance activities supported transactions by businesses and households, while the expansion of data centre and telecommunications activities contributed to demand for digital services.
Together, these developments reflected broad-based activity across consumer-facing, business and digital services during the quarter.
