KUALA LUMPUR (Feb 13): Malaysia’s current-account surplus narrowed sharply in the fourth quarter as the excess in the goods account shrank and the income account deficit widened.
Surplus in the current account totalled RM2 billion in the final three months of 2025, the Department of Statistics Malaysia said in a statement, compared to the revised RM12.8 billion in the preceding quarter and RM12.9 billion in the fourth quarter of 2024.
The surplus means that the country is earning more foreign exchange from goods and services exported than it is spending on imports.
The surplus in the fourth quarter was mainly supported by the sustained net exports of goods and a stronger surplus in the services account, said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
The services account, which posted a surplus for the first time in 14 years in the July-September quarter, expanded further thanks to increased spending by foreign visitors in Malaysia. Tourism is one of the largest sources of foreign exchange for Malaysia.
Services exports were also bolstered by the expansion in data centres in Malaysia, the department noted.
The primary income account, meanwhile, saw a higher deficit mainly driven by higher income generated by foreign investors in Malaysia led by stronger returns from direct investments while income from Malaysia’s investments abroad also rose.
The secondary income accounts — transfers and payments between residents and non-residents — also saw wider deficits.
The financial account turned into a net inflow of RM12.3 billion compared to a net outflow of RM11.2 billion in the third quarter, driven by direct investments.