MALAYSIA’S economy posted a 5.7 per cent growth rate in the fourth quarter of 2025 compared with the same period a year earlier, official advance estimates revealed on Friday, representing the nation’s strongest pace of expansion in over a year.
The October-to-December surge outpaced the third quarter’s 5.2 per cent growth and marked the fastest quarterly increase since the second quarter of 2024, when the economy grew 5.9 per cent.
The Department of Statistics attributed the acceleration to strong performances in the services, manufacturing, and construction sectors.
Chief Statistician Mohd Uzir Mahidin highlighted that “economic growth in the fourth quarter of 2025 was also supported by the continued strengthening of domestic demand.”
Full-year growth for 2025 is expected to reach 4.9 per cent, exceeding the central bank’s forecast of between 4.0 per cent and 4.8 per cent, though slightly below the 5.1 per cent expansion recorded in 2024.
Looking ahead, authorities have signalled that uncertainties surrounding global trade and tariffs could weigh on the economy.
The government projects growth of between 4.0 per cent and 4.5 per cent in 2026, as Malaysia contends with a 19 per cent tariff imposed by the United States on most of its exports.
Final figures for the fourth quarter and full-year 2025 are scheduled for release on 13 February. - January 16, 2026
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