Malaysia’s economy grew 5.2% in 2025, exceeding forecasts of 4–4.8%, driven by strong domestic demand and robust exports, Bank Negara Malaysia (BNM) said.
BNM governor Datuk Seri Abdul Rasheed Ghaffour said the economy also expanded 6.3% in the fourth quarter of 2025, supported mainly by higher household spending, positive labour market conditions, and income-related policy measures. Investment growth was bolstered by machinery and equipment purchases—especially for data centres—and ongoing multi-year projects by both public and private sectors.
Exports strengthened, led by electrical and electronics (E&E) goods, while services exports benefited from inbound tourism and ICT-related services. Imports remained strong due to intermediate and capital goods supporting economic activity.
By sector, growth was led by services and manufacturing. Services expanded on the back of consumer-related subsectors, government services, and ICT, including operational data centres. Manufacturing growth was supported by higher E&E output and consumer goods production. Agriculture also improved, with palm oil production rebounding amid less severe flooding than last year. On a seasonally adjusted basis, quarter-on-quarter growth was 0.8%.
Looking ahead, Abdul Rasheed said 2026 growth will be supported by resilient domestic demand and exports. Household spending will continue to benefit from employment and wage growth, while investment activity will progress through multi-year projects and approved initiatives under national master plans, including the 13th Malaysia Plan. Export growth will be underpinned by steady global demand, especially for E&E goods, alongside a boost from tourism following the Visit Malaysia Year 2026 campaign.
