Preliminary data: Malaysia's economy is expected to grow by 5.7% in the fourth quarter of 2025.

date
16/01/2026
Preliminary estimates show that the Malaysian economy expanded faster than expected in the fourth quarter of 2025, indicating a full-year growth of 4.9% in 2025. The Malaysian Department of Statistics said on Friday that the country's Gross Domestic Product (GDP) grew by 5.7% in the last three months of 2025, mainly supported by the continued growth in the services sector. This data exceeded economists' expectations, which had predicted a growth of 5.4% prior to the announcement. The economy grew by 5.2% year-on-year in the third quarter. In the fourth quarter, the services sector, which accounts for over 59% of GDP, grew by 5.4%, while the manufacturing sector, which accounts for 23% of the country's economy, grew by 6.0%. Citigroup recently raised its growth forecast for Malaysia in 2026 from 4.2% to 4.3%, citing that the growth in exports of electrical and electronic products driven by artificial intelligence could offset the weakness in exports of non-electrical and electronic products caused by tariffs.