CIMB Investment Bank (CIMB IB) expects the Malaysian economy to grow well in the fourth quarter of 2025, with Gross Domestic Product (GDP) growth estimated at 5.3%, while growth for the whole of 2025 is expected to reach 4.8%.
This growth was largely driven by an exceptional surge in crude palm oil (CPO) production towards the end of the year. CPO production increased significantly due to higher crop yields, thus contributing about 0.4 percentage points to the country's economic growth.
This situation is considered exceptional as palm oil production usually declines towards the end of the year.
In addition, the manufacturing sector also showed a strong performance, especially export-oriented industries such as electrical and electronics (E&E).
An increase in the production of computers, electronic equipment and electrical appliances helped strengthen the country's economic growth.
However, CIMB IB warned that growth may slow slightly in 2026, due to a seasonal decline in palm oil production, higher US import tariffs and a strengthening ringgit that could affect export demand.
With that, Malaysia's economic performance at the end of 2025 was encouraging, supported by a strong palm oil and manufacturing sectors
