KUALA LUMPUR, May 19 -- Malaysia's economic growth likely peaked in the first quarter of 2026 and is expected to slow down for the rest of the year, as geopolitical tensions and weakening global demand cast a shadow over the nation's outlook, according to a new report by BMI.

The country's real GDP grew 5.4 per cent year-on-year in the first quarter, a moderation from the 6.3 per cent recorded in Q4 2025, according to data from the Department of Statistics.

The figure was largely in line with market expectations. However, on a seasonally-adjusted basis, the economy showed no growth from the previous quarter, indicating a loss of momentum.

BMI, a FitchSolutions company, is maintaining its full-year growth forecast for Malaysia at 4.3 pe...