Malaysia’s 3Q GDP Growth at 5.1%, Supported by Strong Domestic Demand, export bounce

Malaysia’s gross domestic product (GDP) is expected to expand by 5.1% year-on-year in the third quarter of 2025, slightly below the advance estimate of 5.2%. The growth reflects resilient domestic demand and a rebound in external trade, supported by firm labour market conditions, continued government cash transfers, manageable inflation, and higher tourist arrivals.

External trade performance was a key driver, with net exports of goods surging 93.6% year-on-year to a surplus of RM50.3 billion, boosted by stronger exports and slower import growth.

GDP Growth

While services sector growth is projected to moderate slightly from earlier estimates, manufacturing and agriculture are expected to outperform, backed by improved industrial production and plantation output recovery.

Overall, Malaysia’s 3Q25 GDP growth marks an improvement from the 4.4% expansion recorded in the previous quarter, signalling steady economic momentum heading into year-end amid a balanced domestic and external environment.

Business News