PUTRAJAYA: Malaysia’s economy is projected to expand by 4.5% in the second quarter of 2025, slightly up from 4.4% in the previous quarter, surpassing market forecasts and reinforcing its status as one of the region’s fastest-growing economies.
According to the Statistics Department, the better-than-expected performance is driven by resilient domestic demand and rising investor confidence.
Housing and Local Government Minister Nga Kor Ming said the robust growth is a clear reflection of the Madani government’s reform agenda in revitalising the economy and uplifting the people’s well-being.
“The growth is a clear sign that our economic policies and people-first programmes are starting to show meaningful results.
“Even in the face of global challenges, our domestic economy remains strong, with consumer and investor confidence holding steady.”
Nga highlighted the construction sector as a standout performer, projected to expand by 11%, fuelled by ongoing housing and commercial development.
The services sector is expected to grow 5.3%, up from 5%, while the manufacturing sector is forecast to rise by 3.8%.
Nga said the sustained economic momentum is being supported by key government initiatives such as the basic Rahmah contribution, Rahmah cash contribution, Rahmah aid and the increase in national minimum wage – all of which have boosted household incomes and strengthened domestic spending power. However, he cautioned that Malaysia must remain vigilant amid external uncertainties such as global trade tensions and tariff wars, adding that the government will continue to prioritise inclusive, broad-based growth.
He also welcomed Bank Negara Malaysia’s move to lower the Overnight Policy Rate (OPR) to 2.75%, describing it as a timely step to bolster economic activity, particularly in the property sector.
