Melaka Projects 5% GDP Growth in 2025

MELAKA – Melaka is expected to record a GDP growth of around 5% in 2025, reflecting the state’s steady economic momentum and continued progress across key sectors. The outlook was shared by Melaka Chief Minister Datuk Seri Ab Rauf Yusoh during his New Year 2026 address.

In 2024, the state’s economy grew by 4.4%, with its total economic value reaching RM48.9 billion. This encouraging performance highlights Melaka’s economic resilience and provides a solid base for further growth in the coming year.

Melaka’s labour market also remains healthy, with 521,600 people employed as at the third quarter of 2025 and an unemployment rate of 2.4%. These figures reflect a stable job market and continued demand for workers, supported by ongoing business and investment activities in the state.

Tourism continues to play an important role in driving economic activity. In 2025 alone, Melaka welcomed more than 15 million visitors, generating an estimated RM14 billion in economic impact. The strong performance of the tourism sector further strengthens Melaka’s position as one of the country’s leading destinations.

Taken together, the projected 5% GDP growth signals a positive outlook for Melaka’s economy. With steady employment, a strong tourism sector and ongoing economic activity, the state remains well-placed to attract domestic and foreign investments, while continuing its efforts towards sustainable and inclusive growth.