KUALA LUMPUR: Malaysia’s economy is forecast to grow by 4.4 per cent in the first quarter of 2025 (1Q 2025) based on advance estimates, easing from a five per cent expansion in the previous quarter, backed by domestic activities and steady demand, according to the Department of Statistics Malaysia (DOSM).
In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said Malaysia’s gross domestic product (GDP) growth remained firm amid persistent global headwinds, underpinned by resilient domestic fundamentals.
He said the manufacturing sector recorded a 4.8 per cent increase in output for February, driven largely by export-oriented industries.
“Seasonal events such as Chinese New Year celebrations, preparations for Ramadan and the reopening of the school year helped keep overall economic activities on a positive track.
“These factors contributed to a stronger performance in distributive trade sales, which rose by 5.1 per cent in February as compared to 4.6 per cent in the previous month, mainly supported by strong performances in both retail and wholesale trade,” he said.
Additionally, Mohd Uzir said the labour market remained favourable, marked by a continued rise in employment and a stable unemployment rate of 3.1 per cent.
On the external front, he said sustained trade activity was aided by improved global demand for key export goods.
“Collectively, these domestic and external components helped buffer the economy against global challenges, supporting overall growth during the quarter,” he said.
Looking at the sectoral performance, the services sector remained the primary driver of economic growth in 1Q 2025, registering a 5.2 per cent growth (4Q 2024: 5.5 per cent), with key contributions from the wholesale and retail trade, transportation and storage, and information and communication sub-sectors.
The manufacturing sector also recorded a growth of 4.2 per cent (4Q 2024: 4.4 per cent), largely supported by strong output in electrical, electronic and optical products, as well as the vegetable and animal oils and fats and food processing.
He added that the construction sector recorded its fifth consecutive quarter of double-digit growth at 14.5 per cent (4Q 2024: 20.7 per cent), supported primarily by specialised construction activities and residential buildings.
The agriculture sector posted a marginal increase of 0.7 per cent (4Q 2024: -0.5 per cent), driven by the fishing sub-sector, while the mining and quarrying sector declined further to negative 4.9 per cent (4Q 2024: -0.9 per cent), reflecting lower production across all sub-sectors.
