Analysts revised Malaysia’s full-year GDP forecast upward to 4.3% from 4.0%.

KUALA LUMPUR, Aug 17 — Malaysia’s economy expanded by 4.4% year-on-year in the second quarter of 2025, sustaining the same pace as the previous quarter but coming in slightly below the government’s advance estimate of 4.5%. The performance, however, was marginally stronger than earlier private forecasts of 4.3%.

Net exports weighed heavily on growth, subtracting 2.6 percentage points, as the trade surplus in goods and services plunged 72.6% from a year earlier. Real exports grew at a faster 6.6%, but this was offset by slower import growth of 2.6%.

Revised GDP Forecast

By sector, services remained the main driver, rising 5.1% compared to 5.0% in the first quarter. Construction activity moderated to 12.1% from 14.2%, though still higher than earlier estimates, while manufacturing growth eased to 3.7% from 4.1%.

Given the stronger-than-expected first-half performance, analysts have revised Malaysia’s full-year GDP forecast upward to 4.3% from 4.0%. While weaker commodity exports pose a drag, economists note that resilience in external trade—driven by front-loading demand and firmer re-exports—has helped buffer the economy.

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