Malaysia’s economy expanded 6% in the second quarter of 2026. This growth surpassed market forecasts and accelerated from 5.4% in the previous quarter. The global artificial intelligence boom fueled a 7.5% expansion in the chipmaking manufacturing sector. Construction grew 6.6% due to data center development. The nation is specializing in back-end semiconductor processes like packaging and testing. Microsoft, Nvidia, Google, and Intel are building new chip facilities and data centers. These investments reinforce Malaysia's position as a key beneficiary of the AI cycle.