KUALA LUMPUR (Jan 16): Malaysia’s economy accelerated above expectations in the fourth quarter as services and manufacturing activities picked up, official flash estimates showed.
Gross domestic product expanded 5.7% in October-December of 2025 when compared to the same quarter a year earlier, the Department of Statistics Malaysia said in a statement on Friday. That compares to a Bloomberg poll’s median 5.4% increase and the third quarter’s 5.2% year-on-year growth.
“Economic growth in the fourth quarter of 2025 was also supported by the continued strengthening of domestic demand,” said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
Tourism activities and festive spending helped sustain household consumption while hundreds of conferences and large-scale international events as well as Sabah state elections “directly” boosted the economy during the quarter, he added.
The first estimate also pointed to Malaysia’s economy growing 4.9% for the full 2025, faster than the official projection for 4.0%-4.8%, but a tad slower than the 5.1% expansion in 2024.
The second set of more comprehensive data will be released on Feb 13.
Supply-side data showed growth in the services sector — which accounts for more than half of Malaysia’s economic output — accelerating to 5.4% in the fourth quarter on the back of retail, logistics, food and accommodation.
Manufacturing grew 6.0%, mainly supported by electrical and electronic products as well as processing of vegetable and animal oils, as well as fats and food.
Construction rose 11.9% from robust activity in non-residential and specialised buildings, while agriculture production surged to 5.1% after marginal growth in the third quarter on the back of palm oil output.
However, the mining and quarrying sector decelerated sharply to 1.1% from a 9.7% gain in the third quarter, mainly due to slower crude oil and condensate extraction.