Malaysia GDP Growth Tops Estimate

(RTTNews) - Malaysia's economy grew more than initially estimated in the fourth quarter, reaching the strongest in three years, fueled by robust private consumption and investment, official data revealed Friday.

Gross domestic product posted an annual growth of 6.3 percent in the fourth quarter, the strongest since the fourth quarter of 2022, the Department of Statistics said.

This was revised up sharply from the initial estimate of 5.7 percent. The fourth quarter growth was also faster than the prior quarter's 5.4 percent expansion.

On a quarterly basis, GDP gained 0.8 percent after rising 2.7 percent in the third quarter.

Driven by strong domestic demand and favorable exports, overall Malaysia's economy expanded 5.2 percent in 2025 compared to 5.1 percent in 2024. The 2025 growth exceeded the official forecast of 4 percent to 4.8 percent.

"This growth momentum is expected to continue in 2026, supported by resilient domestic demand and exports," said Bank Negara Malaysia Governor Abdul Rasheed Ghaffour.

In 2025, headline and core inflation averaged at 1.4 percent and 2 percent, respectively. The governor said headline inflation is expected to remain moderate in 2026 amid the continued easing in global cost conditions.

All supply side sectors registered better growth, with the services and manufacturing sectors continuing to drive overall performance in the fourth quarter. The service sector grew 6.3 percent and manufacturing registered an expansion of 6.1 percent.

The agriculture sector advanced 5.4 percent, while the mining and quarrying sector growth eased to 2.0 percent. The construction sector posted a double-digit growth of 11.0 percent.

The expenditure-side breakdown of GDP showed that household spending advanced 5.3 percent supported mainly by higher spending on transport, restaurant and hotels and communication. Likewise, government consumption strengthened further to 8 percent, driven by increased spending on supplies and services.

Gross fixed capital formation grew at a faster pace of 9.3 percent underpinned by robust private investment. Data showed that exports grew 3.9 percent and imports surged 7.9 percent.