Malaysia’s Economy Holds Strong at 5.2% in 3Q25, Supported by Net Exports Amid Easing Domestic Demand

Malaysia’s economy expanded by 5.2% year-on-year in 3Q25, slightly up from 4.4% in the previous quarter, in line with advance estimates, signaling resilient momentum despite global uncertainties. The growth was primarily lifted by net exports, while domestic demand showed signs of moderation. Private consumption remained steady at 5.0% YoY, supported by a strong labour market and unemployment at a decade-low of 3.0% in September. Private investment growth slowed to 7.3% following moderation in machinery and equipment spending.

Net Exports

On the external front, exports rose 1.4% YoY, while imports slowed sharply to 0.4%, resulting in a net export contribution of +17.7% and boosting GDP growth. Sectorally, mining rebounded sharply to 9.7% with recovery in oil and gas production, manufacturing grew 4.1% driven by electronics and consumer goods, construction maintained double-digit growth at 11.8%, and services held at 5.0%. Agriculture eased to 0.4%, impacted by lower palm oil and rubber output.

The current account surplus widened significantly to 2.4% of GDP, with goods and services contributing positively, including the first services surplus in 14 years. Bank Negara Malaysia expects domestic demand to remain the main growth anchor, while manufacturing and exports may moderate in 2026 due to external headwinds, including US tariffs. Overall, GDP growth is projected at 4.5% for 2025 and 4.1% for 2026. Apex

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