Malaysia's economy expands faster than expected on AI export demand

Malaysia's economy expanded at a stronger-than-forecast pace in the three months to September, capitalising on robust demand for goods tied to the global artificial intelligence boom. The Southeast Asian nation recorded gross domestic product growth of 5.3% compared with the same period a year earlier, signalling a sustained recovery in the region's third-largest economy. The performance suggests that Malaysia's strategic position in global tech supply chains is translating into tangible economic gains. Exports have emerged as a key driver of growth, with shipments of semiconductors and related components benefiting from surging international appetite for AI infrastructure and computing hardware. The expansion underscores Malaysia's evolving role as a crucial hub for technology manufacturing in Southeast Asia, even as the country navigates broader regional economic uncertainties. Economists will be monitoring whether the export-led growth trajectory can be sustained amid fluctuating global demand and potential shifts in international supply chains.