Malaysia’s GDP Surges to 5.7% in Q4 2025, Beating Forecasts

Malaysia’s GDP expanded strongly by 5.7% year-on-year in the fourth quarter of 2025, accelerating from 5.2% in the previous quarter and surpassing both market consensus and internal forecasts. The robust performance was primarily driven by faster growth in the services, manufacturing, and agriculture sectors. On a quarterly basis, growth moderated to 3.0% qoq from 5.4% in Q3, reflecting broad-based slowdown across sub-sectors.

GDP Surges

For the full year 2025, the economy recorded 4.9% growth, slightly down from 5.1% in 2024 but better than anticipated, demonstrating resilience despite U.S. tariff pressures. Analysts maintain a 4.3% forecast for 2026, supported by solid domestic demand, while remaining cautious on future trade risks in semiconductors.

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