KUALA LUMPUR: Malaysia’s economy is projected to grow by 5.7% in the fourth quarter of 2025 (Q4 2025), supported by a strong performance in the main economic sectors and robust domestic demand, according to the Department of Statistics Malaysia (DOSM).
Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said Q4’s strong economic growth was driven by the services sector’s 5.4% growth.
“The manufacturing sector grew 6% (Q3 2025: 4.1%), the construction sector remained strong at 11.9%, the agriculture sector registered a marked improvement to 5.1%, and the mining and quarrying sector recorded an increase of 1.1%,” he said in a statement today.
According to DOSM, advance estimates for Q4 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 (5.9%,” it said.
DOSM said that for 2025 as a whole, Malaysia’s economy is estimated to grow 4.9%, approaching the 5.1% growth in 2024.
Meanwhile, Mohd Uzir said the continued strengthening of domestic demand supported economic growth in Q4 2025.
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, notwithstanding an uncertain external environment.
“As the Asean Chair, 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 Q4 2025, directly contributing to stimulating economic activity during this quarter,” Mohd Uzir said.
Based on the relevant economic indicators, DOSM said, 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 increased 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.
“The services sector registered a growth of 5.1% in 2025, the manufacturing sector continued to register steady growth at 4.5%, the construction sector maintained double-digit growth at 12.4%, the agriculture sector eased to 2.2%, while the mining and quarrying sector posted a marginal growth of 0.5%.
“Subsequent to these advance estimates, the preliminary GDP data, which will provide a detailed and comprehensive analysis of economic performance for the fourth quarter of 2025, will be released on Feb 13, 2026,” it added. – Bernama
