Malaysia’s economy grows 4.9% in 2025, trade exceeds RM3 trillion, attracting foreign investment due to political stability and policy reforms.
PUTRAJAYA: The country’s economy is on a strong trajectory and remains a prime focus for foreign investors and major corporations, according to MADANI Government spokesperson Datuk Fahmi Fadzil.
Fahmi, who is also Communications Minister, cited Malaysia’s trade volume surpassing RM3 trillion for 2025 and a Gross Domestic Product (GDP) growth of 4.9% last year as proof of this strength.
“Our economic growth is better than what we expected,” he said at a ministry event.
“We had expected GDP growth of between 4.0 and 4.8%, but alhamdulillah, the fourth quarter showed a very brisk growth.”
He attributed the country’s good performance to the political stability and sound policies of the government led by Prime Minister Datuk Seri Anwar Ibrahim.
“Outsiders see what is happening in our country as a movement, change and a very positive transition,” Fahmi said.
“This can only happen in a stable political situation and stable policies.”
These factors are crucial for investors viewing Malaysia as a favourable investment destination, he added.
The minister highlighted that over the past three years, the government has focused on correcting and resolving pending issues, including civil servant salary adjustments.
He pointed to the implementation of targeted subsidies for diesel, electricity, chicken, eggs, and RON95 petrol as a key reform.
“We can reduce waste, save from leakage and give to those who need it,” Fahmi stated.
“For three months of the year we have managed to save RM800 million each month, which is when we targeted RON95 only for Malaysian citizens.”
He noted that not only do citizens continue to receive subsidised RON95, but its price has also dropped to RM1.99 per litre.
Official data reported that Malaysia’s trade reached a record RM3.06 trillion in 2025, a 6.3% increase from the previous year.
Exports hit an all-time high of RM1.607 trillion, while imports grew to RM1.455 trillion, resulting in a trade surplus of RM151.8 billion.
