MALAYSIA’s gross domestic product (GDP) is projected to expand by 4.4 per cent in the first quarter of 2025, easing slightly from a five per cent increase in the previous quarter, according to advance estimates released by the Department of Statistics Malaysia (DOSM).
In a statement, Chief Statistician Datuk Seri Mohd Uzir Mahidin said domestic economic activities remained robust despite persistent global headwinds.
“Malaysia’s GDP growth remained firm amid persistent global headwinds, underpinned by resilient domestic fundamentals,” he said.
The manufacturing sector saw a 4.8 per cent rise in output in February, supported primarily by export-oriented industries. Seasonal factors such as Chinese New Year celebrations, Ramadan preparations and the reopening of schools also contributed to the momentum.
“These factors contributed to a stronger performance in distributive trade sales, which rose by 5.1 per cent in February as compared to 4.6 per cent in the previous month, mainly supported by strong performances in both retail and wholesale trade,” Mohd Uzir said.
He also noted that the labour market remained healthy, with employment continuing to rise and the unemployment rate holding steady at 3.1 per cent.
“Sustained trade activity was aided by improved global demand for key export goods. Collectively, these domestic and external components helped buffer the economy against global challenges, supporting overall growth during the quarter,” he added.
Sector-wise, services continued to lead Malaysia’s economic growth, expanding by 5.2 per cent in the first quarter of 2025, slightly lower than the 5.5 per cent growth recorded in the previous quarter. Wholesale and retail trade, transport and storage, and information and communication were key contributors.
The manufacturing sector also showed solid performance with 4.2 per cent growth, largely driven by electrical and electronic products, as well as food processing and the production of vegetable and animal oils and fats.
The construction sector posted its fifth consecutive quarter of double-digit growth, increasing by 14.5 per cent, though slightly below the 20.7 per cent in Q4 2024. The growth was led by specialised construction and residential building activities.
The agriculture sector recorded a modest increase of 0.7 per cent after contracting by 0.5 per cent in the previous quarter, supported by improvements in the fishing sub-sector.
However, the mining and quarrying sector continued to contract, shrinking by 4.9 per cent compared to a 0.9 per cent decline in Q4 2024, due to lower output across all its sub-sectors. - April 18, 2025
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