Malaysia's economy grew steadily in the second quarter of 2025, driven by strong domestic demand even as exports continued to decline.
Gross Domestic Product (GDP) grew by 4.4% compared to the same period last year, slightly below the initial estimate of 4.5% and in line with growth in the first quarter.
Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said uncertainty over tariffs continued to linger and the impact would take time to fully materialise.
Global tariff uncertainty still lingered but Malaysia was well-positioned to weather it. He stressed that the growth forecast of 4% to 4.8% this year was still appropriate to take into account the uncertainties.
In addition, private consumption grew by 5.3% while private investment surged by 11.8%, supported by growth in tourism activities. Although exports of electrical and electronics began to slow towards the end of the second quarter, the domestic sector remained the main engine of growth.
The United States currently imposes a 19% import tariff on Malaysian goods, while the threat of a 100% tariff on semiconductors, which account for about a third of exports to the US, remains a major risk.
