KUALA LUMPUR, Jan 16 — Malaysia’s economy is projected to grow by 5.7 per cent in the fourth quarter (Q4) of 2025, supported by a strong performance in the main economic sectors and robust domestic demand, said the Statistics Department (DOSM).
Chief statistician Datuk Seri Mohd Uzir Mahidin said Q4’s strong economic growth was driven by the services sector’s 5.4 per cent growth.
“The manufacturing sector grew 6 per cent (Q3 2025: 4.1 per cent), the construction sector remained strong at 11.9 per cent, the agriculture sector also registered a marked improvement to 5.1 per cent, and the mining and quarrying sector recorded an increase of 1.1 per cent,” he said in a statement today.
According to DOSM, advance estimates for Q4 growth at 5.7 per cent showed the economy accelerated from the 5.2 per cent expansion recorded in the previous quarter.
“The 5.7 per cent growth was the highest since the second quarter of 2024 (Q2 2024: 5.9 per cent),” it said.
DOSM said that for 2025 as a whole, Malaysia’s economy is estimated to grow 4.9 per cent, approaching the 5.1 per cent expansion recorded in 2024.
Meanwhile, Uzir said the continued strengthening of domestic demand also supported Q4’s economic growth.
He added that the expansion in tourism activities during public and school holidays, increased expenditure on school-related items due to changes in the 2026 academic calendar, festive spending during Deepavali and Christmas, stable labour market conditions, and sustained investment activity contributed to the strengthening of household consumption, notwithstanding an uncertain external environment.
“As ASEAN chair, Malaysia hosted a few hundred meetings, conferences, and various large-scale international events across the country’s major cities, while the Sabah election also took place in Q4 2025, directly contributing to stimulating economic activity during this quarter,” he said.
Based on the relevant economic indicators, DOSM said the strong growth of the Industrial Production Index (IPI) of 6 per cent in October and 4.3 per cent in November reflects strengthening industrial activity.
“This is particularly within the manufacturing sector, which expanded by 6.5 per cent in October and 4.9 per cent in November, driven by the performance of export-oriented industries,” it said.
Exports recorded robust growth of 15.7 per cent in October before moderating to 7 per cent in November 2025, while imports increased from 10 per cent in October to 15.8 per cent in November.
In line with these developments, DOSM said Malaysia’s total trade continued to record double-digit growth of 13 per cent in October and 11.1 per cent in November 2025.
It estimated Malaysia’s full-year 2025 gross domestic product (GDP) to expand by 4.9 per cent compared with 5.1 per cent in the preceding year, with all sectors reporting positive growth.
“The services sector registered a growth of 5.1 per cent in 2025, the manufacturing sector continued to register steady growth at 4.5 per cent, the construction sector maintained double-digit growth at 12.4 per cent, the agriculture sector eased to 2.2 per cent, while the mining and quarrying sector posted a marginal growth of 0.5 per cent.
“Subsequent to these advance estimates, the preliminary GDP data, which will provide a detailed and comprehensive analysis of economic performance for the fourth quarter of 2025, will be released on February 13, 2026,” DOSM added.
