Malaysia Q4 GDP Growth Stronger Than Initially Thought

Malaysia’s economy expanded 6.3% year-on-year in Q4 2025, revised up from an initial 5.7% and accelerating from 5.4% growth in Q3. This marked the sharpest expansion since Q4 2022, with broad gains in agriculture (5.4% vs 0.1%), driven by oil palm output (16.2%), manufacturing (6.1% vs 4.1%), particularly vegetable and animal oils & fats (12%), and services (6.3% vs 5.5%), led by wholesale and retail trade (5.7%). Conversely, growth slowed in mining and quarrying (2% vs 9.7%) and construction (11% vs 11.8%). On the expenditure side, government spending (8% vs 7.1%), household consumption (5.3% vs 5%), and fixed investment (9.3% vs 7.4%) rose further. Meanwhile, net trade weighed on growth as imports jumped 7.9% (vs 0.7%), while exports increased by a smaller 3.9% (vs 1.7%). On a quarterly basis, GDP grew 0.8%, easing from 2.7% growth in Q3. For the full year, the economy expanded 5.2%.

Malaysia’s economy advanced 5.7% yoy in Q4 2025, accelerating from a 5.2% rise in Q3 and marking the strongest growth since Q2 2024, flash data showed. Manufacturing activity gained momentum (6.0% vs 4.1% in Q3), lifted by higher output in electrical and optical products, vegetable and animal oils, fats and food processing, non-metallic mineral products, and basic metal and fabricated metals. The agriculture sector also picked up strongly (5.1% vs 0.4%), boosted by a rebound in palm oil. Meanwhile, the construction sector kept its double-digit expansion (11.9% vs 11.8%), helped by a solid rise in non-residential buildings and specialised construction. However, mining and quarrying were subdued (1.1% vs 9.7%), dragged by a slowdown in crude oil & condensate and a fall in natural gas. Quarterly, the economy expanded 3.0%, after an upwardly revised 5.4% rise in Q3, which had been the fastest gain since Q4 2021. For the full year, the economy grew 4.9%, slightly slowing from 5.1% in 2024.

Malaysia’s economy expanded by 5.2% year-on-year in Q3 2025, confirming preliminary estimates and accelerating from 4.4% growth in the previous quarter. This marks the strongest economic expansion in a year, driven by higher output in manufacturing (4.1% vs 3.7% in Q2) and a rebound in mining and quarrying (9.7% vs -5.2%). Meanwhile, growth slowed sharply in agriculture (0.4% vs 2.5%), and, to a lesser extent, in construction (11.8% vs 12.1%) and services (5% vs 5.1%). On the expenditure side, government spending picked up (7.1% vs 6.4%), the fastest since Q2 2024, and net trade contributed positively, with exports rising 1.4% (vs 2.6%) while imports grew more slowly at 0.4% (vs 6.6%). Conversely, Growth slowed for private consumption (5% vs 5.3%), and fixed investments recorded their softest pace in nearly two years (7.4% vs 12.1%). On a quarterly basis, the economy expanded 2.4%, the strongest since Q2 2022, following a revised 2.2% growth in the prior quarter.