Malaysia’s economy expanded by 5.2 % in 2025 — its fastest rate in three years — beating official forecasts, driven by strong domestic demand, exports and investment, the Department of Statistics and central bank data show. The fourth quarter saw a 6.3 % year-on-year growth, the highest in 12 quarters, as sectors such as manufacturing and services outperformed expectations.
Malaysia’s GDP grows 5.2 % in 2025 as domestic demand and exports power the economy
The strong performance came despite external headwinds including trade uncertainties and export tariffs. Bank Negara Malaysia maintained its policy rate at 2.75 % after noting steady inflation and positive outlook, while projections for 2026 growth remain bullish.
The ringgit also strengthened to an eight-year high amid confidence in Malaysia’s economic fundamentals, with analysts seeing continuation of growth momentum into 2026 supported by tourism and technology investment.
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