Malaysia’s economy grew 5.2% in Q3 2025, driven by robust domestic demand and exports, positioning the country to achieve its 4.0-4.8% annual growth target.
KUALA LUMPUR: Malaysia’s economy is firmly on track to achieve the higher end of its 2025 growth target following strong third-quarter performance.
Prime Minister Datuk Seri Anwar Ibrahim confirmed the country recorded 5.2% GDP growth in Q3 2025, up from 4.4% in the previous quarter.
This robust performance positions Malaysia to reach the upper range of its 4.0% to 4.8% full-year growth projection.
Anwar, who also serves as Finance Minister, attributed the growth to resilient domestic demand and stable labour market conditions.
“Malaysia’s economy expanded in 3Q 2025 by 5.2% versus 4.4% in the second quarter of 2025, driven by robust performance across all sectors,” he stated.
Domestic demand remained the primary growth driver at 5.8%, supported by strong household spending and favourable labour conditions.
The government’s social assistance programmes including Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah further boosted consumer spending.
Export improvement also contributed to economic expansion, reflecting some front-loading activities.
For the first nine months of 2025, the economy grew by 4.7%, demonstrating resilience against global challenges.
Employment increased by 3.1% to 17.0 million persons while unemployment held steady at 3.0%.
Inflation remained stable at 1.3% during the quarter.
Manufacturing sector sales reached RM500.1 billion, representing 3.5% growth.
The Industrial Production Index increased by 4.9% while total trade expanded to RM769.8 billion.
Malaysia recorded a trade surplus of RM50.3 billion and a current account surplus of RM12.2 billion.
The services account achieved a RM0.7 billion surplus after 14 consecutive years of deficits.
Foreign direct investment recorded a net inflow of RM8.5 billion.
The ringgit strengthened to RM4.2070 against the US dollar, rising 0.1%.
Anwar reaffirmed the government’s commitment to the MADANI Economy Framework through structural and fiscal reforms.
The government aims to reduce the fiscal deficit to 3.8% in 2025 and 3.5% in 2026.
The 13th Malaysia Plan and Fourth MADANI Budget will further support economic growth and public welfare. – Bernama
