Preliminary Data: Malaysia's Q4 2025 Economic Growth Hits 5.7%

Deep News01-16

Preliminary estimates indicate that Malaysia's economy expanded at a faster-than-expected pace in the fourth quarter of 2025, suggesting full-year growth of 4.9% for 2025.

The country's statistics department stated on Friday that the nation's gross domestic product (GDP) grew by 5.7% in the final three months of 2025, primarily supported by sustained expansion in the services sector. This figure surpassed economists' expectations, which had forecasted growth of 5.4%.

The economy had grown by 5.2% year-on-year in the third quarter.

In the fourth quarter, the services sector, which accounts for over 59% of GDP, expanded by 5.4%, while the manufacturing sector, representing 23% of the economy, grew by 6.0%.

Citi recently raised its 2026 growth forecast for Malaysia from 4.2% to 4.3%, citing that growth in artificial intelligence-driven electrical and electronics exports could cushion, or even offset, the weak impact of tariffs on non-electrical and electronics exports.

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