Based On Fourth Quarter 2025 GDP Estimates, Malaysia Exceeds Economic Targets, Says The Ministry of Economy
Malaysia’s economy recorded a stronger than expected performance in the fourth quarter of calendar year 2025, with Gross Domestic Product (GDP) expanding by 5.7% year on year, according to advance estimates released by the Department of Statistics Malaysia.
In a statement, The Ministry of Economy noted that the encouraging performance in the final quarter lifted Malaysia’s full year GDP growth for 2025 to 4.9%, reflecting sustained domestic economic activities despite a challenging global environment.
The Ministry highlighted that economic expansion during the fourth quarter was supported primarily by continued growth in the services and manufacturing sectors, alongside a significant rebound in the agriculture sector. The services sector expanded on the back of robust activities in wholesale and retail trade, transportation and storage, food and beverages, as well as accommodation related services. Meanwhile, manufacturing growth was driven by higher output in electrical, electronic and optical products, food processing, and other related industries.
The construction sector continued to register double digit growth, supported by improved performance in non-residential buildings and specialised construction activities, while the mining and quarrying sector recorded more moderate growth due to softer performance in selected sub-sectors.
Based on the advance GDP estimates, average annual growth during the Twelfth Malaysia Plan period from 2021 to 2025 is estimated at 5.2%, indicating that the country has achieved its medium-term economic growth targets as outlined under the national development plan.
Looking ahead, The Ministry of Economy projects Malaysia’s economic growth in 2026 at 4.3%, with domestic demand expected to remain the key driver of growth. This stable macroeconomic outlook continues to provide a supportive environment for business and investment activities across states, including Melaka.
