KUALA LUMPUR: Malaysia’s economy is projected to have grown by 5.7% in the fourth quarter of 2025 (4Q 2025), supported by a strong performance in the main economic sectors and robust domestic demand.
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin of the Statistics Department of Malaysia (DOSM) said 4Q’s strong economic growth was driven by the services sector’s 5.4% growth.
“The manufacturing sector grew 6% (3Q 2025: 4.1%), the construction sector remained strong at 11.9%, the agriculture sector also registered a marked improvement to 5.1%, and the mining and quarrying sector recorded an increase of 1.1%,” he said in a statement yesterday.
According to DOSM, advance estimates for 4Q growth at 5.7% showed the economy accelerated from the 5.2% expansion recorded in the previous quarter.
“The 5.7% growth was the highest since the second quarter of 2024 (2Q 2024: 5.9%),” it said as reported by Bernama.
DOSM said that for 2025 as a whole, Malaysia’s economy is estimated to grow 4.9%, approaching the 5.1% growth in 2024.
Mohd Uzir said the continued strengthening of domestic demand also supported 4Q’s economic growth.
He elaborated that the expansion in tourism activities during public and school holidays, increased expenditure on school-related items due to changes in the 2026 academic calendar, festive spending during Deepavali and Christmas, stable labour market conditions and sustained investment activity contributed to the strengthening of household consumption.
“Malaysia hosted a few hundred meetings, conferences and various large-scale international events across the country’s major cities, while the Sabah state election also took place in 4Q 2025, directly contributing to stimulating economic activity during this quarter,” he said.
Based on the relevant economic indicators, DOSM stated that the strong growth of the Industrial Production Index of 6% in October and 4.3% in November reflects strengthening industrial activity.
“This is particularly within the manufacturing sector, which expanded by 6.5% in October and 4.9% in November, driven by the performance of export-oriented industries,” it said.
Exports recorded robust growth of 15.7% in October before moderating to 7% in November 2025, while imports jumped from 10% in October to 15.8% in November.
In line with these developments, DOSM said Malaysia’s total trade continued to record double-digit growth of 13% in October and 11.1% in November 2025.
It estimated Malaysia’s full-year 2025 gross domestic product (GDP) to expand by 4.9% compared with 5.1% in the preceding year, with all sectors reporting positive growth.
