Malaysia's economy grew 5.7% in the fourth quarter of 2025 compared to the previous year, exceeding market expectations of 5.4%, according to a preliminary estimate released by the Department of Statistics Malaysia on Friday.
The growth was supported by increased activity in the services and manufacturing sectors, as well as continued strengthening of domestic demand.
Chief of Statistics, Datuk Seri Dr Mohd Uzir Mahidin, said GDP growth in the last quarter of last year was also driven by increased household consumption, tourism activities, spending during the festive season, as well as large-scale events including the Sabah state election.
All these factors helped maintain the economic momentum throughout the fourth quarter.
In terms of sectors, services, which account for more than half of the country's economic output, grew 5.4%, driven by retail, logistics, food, and accommodation activities.
Manufacturing, meanwhile, recorded a growth of 6.0%, mainly supported by the production of electrical and electronic products, processing of vegetable and animal oils, and fats and foods.
The construction sector recorded the highest increase of 11.9%, driven by brisk activity in non-residential and specialist buildings.
Meanwhile, the agriculture sector surged 5.1%, led by palm oil production which rebounded after marginal growth in the previous quarter.
However, the mining and quarrying sector contracted to 1.1%, from 9.7% growth in the third quarter, due to slower crude oil and condensate extraction.
For the full year 2025, Malaysia’s economy is expected to grow 4.9%, higher than the official projection of 4.0%-4.8%, but slightly slower than the 5.1% growth in 2024.
The Department of Statistics Malaysia will release a second, more comprehensive set of data on 13 February 2026, which is expected to provide a more detailed picture of the country’s economic performance
