KUALA LUMPUR: Malaysia’s economy recorded a strong growth of 5.2 per cent in 2025, surpassing both the government’s projection and preliminary estimate announced in the middle of last month.

The government had projected gross domestic product (GDP) growth for 2025 to be between 4.0 and 4.8 per cent, while the preliminary estimate indicated that Malaysia’s economy expanded by 4.9 per cent.

Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said the 5.2 per cent expansion was buoyed by strong domestic demand and favourable exports.

“This growth momentum is expected to continue in 2026, supported by resilient domestic demand and exports,” he said in a statement today.

For the fourth quarter of 2025, the central bank said Malaysia’s economy expanded by 6.3 per cent (Q3 2025: 5.4 per cent), driven mainly by domestic demand.

It added that growth in household spending was higher, driven by positive labour market conditions and income-related policy support.

“The strong investment growth was underpinned by stronger machinery and equipment spending, particularly for data centres, and ongoing implementation of multi-year projects by both the private and public sectors.

“In the external sector, exports continued to strengthen, led mainly by stronger exports of electrical and electronics (E&E) goods.

“Inbound tourism and information and communication technology (ICT)-related services also contributed to services exports growth and surplus in the current account balance,” it said.

Bank Negara said imports remained strong driven by the rebound in intermediate goods to support economic activity and productive capital-related goods reflecting the realisation of ongoing investment projects.

On the supply side, growth was mainly accounted for by the expansion in the services and manufacturing sectors.

“Higher growth in the services sector was mainly driven by consumer-related subsectors, government services as well as ICT subsector following the operationalisation of data centres.

“In the manufacturing sector, performance was driven by stronger production in the

E&E sub-sector induced by higher demand from the global technology expansion, alongside the increased output of consumer-related goods,” it noted.

Meanwhile, the agriculture sector strengthened, reflecting higher growth for palm oil amid less severe floods compared to last year.

On a seasonally adjusted quarter-on-quarter basis, growth expanded by 0.8 per cent (Q3 2025: 2.7 per cent).

Looking ahead, the central bank said on the domestic front, household spending will benefit from continued support from employment and wage growth, as well as government policy measures.

It added that investment activity will be driven by the further progress of multi-year projects in both the private and public sectors, with continued realisation of approved investments and implementation of catalytic initiatives under national master plans and the 13th Malaysia Plan.

“On the external front, export growth will be underpinned by steady global demand, particularly for E&E goods.

“Growth will also be supported by increased tourism activities following the launch of Visit Malaysia Year 2026,” it said.