KUALA LUMPUR (Nov 14): Malaysia’s economic growth may have accelerated in the third quarter powered largely by robust consumer spending, according to a survey of economists.

Gross domestic product (GDP) likely expanded 5.2% in the third quarter from a year earlier, according to the median estimate in a poll of 18 economists by Bloomberg. The print would be much higher than the 4.4% year-on-year growth recorded in the second quarter.

A firm labour market, aided by cash handout programmes, boosted household spending while a surge in tourist arrivals lifted retail activity, said Bank Islam. Together, they point to strong private consumption growth in the third quarter, the research house said.

The Department of Statistics Malaysia is due to announce the second, comprehensive estimate for GDP on Friday. Official advance estimates released last month pointed to the economy growing 5.2% year-on-year.

Bank Negara Malaysia has kept the benchmark interest rate unchanged at its final monetary policy review for the year ahead of the data release, drawing comfort from positive macroeconomic indicators.

A sharp pick-up in net exports, which meant that exports grew faster than imports, also shored up the economy during the third quarter.

“While net exports contribute a relatively small portion to the overall economy, the rebound provides an encouraging signal for Malaysia’s broader economic outlook,” said TA Securities.

The remaining months of 2025, however, could see some moderation as the rush in orders to beat US tariffs fade and trade tensions ease, MBSB Research said.

“Nevertheless, we remain cautious that renewed trade and geopolitical tensions would destabilise and disrupt global trade and supply chain activities,” the house flagged.

Malaysia’s economy is expected to expand 4.0%-4.8% this year, according to official forecasts.