Malaysia’s current account balance (CAB) remained in surplus in the second quarter of 2026, although the surplus moderated to RM10.8 billion amid a wider primary income deficit and weaker performance in the Services account, according to the Department of Statistics Malaysia (DOSM).
The latest figure compares with a higher surplus in the preceding quarter, with the moderation reflecting increased outflows in primary income and a weakening Services account.
Despite this, the Goods account strengthened, recording net exports of RM40.7 billion in 2Q 2026, compared with RM33.6 billion in 1Q 2026.
The stronger goods balance provided an important support to Malaysia’s external position during the quarter.
Meanwhile, Malaysia’s Financial account reversed into a net outflow of RM27 billion in 2Q 2026, compared with a net inflow of RM27.4 billion in the preceding quarter.
DOSM said the turnaround was driven primarily by net outflows in portfolio investment and financial derivatives.
Despite the shift in financial flows, Malaysia’s international reserves continued to strengthen, rising to RM537 billion at end-June 2026, from RM511.3 billion at the end of the first quarter.
The latest increase represents an improvement of RM25.7 billion over the quarter, providing further support to the country’s external position.
Foreign Direct Investment (FDI) recorded a net inflow of RM7.4 billion in 2Q 2026, substantially lower than the RM22.8 billion recorded in the first quarter.
At the same time, Malaysia’s Direct Investment Abroad (DIA) registered a net outflow of RM7 billion, narrowing from RM8.1 billion in 1Q 2026.
The latest figures indicate that while Malaysia continued to attract net foreign direct investment, the pace of inflows moderated during the quarter.
Overall, Malaysia maintained a positive current account position in 2Q 2026, supported by a stronger goods trade balance, although weaker services performance, higher primary income outflows and a reversal in financial flows presented some headwinds to the country’s external accounts.
