KUALA LUMPUR, Feb 13 — Malaysia’s economy grew by 5.2 per cent in 2025 on account of strong domestic demand and favourable exports exceeding the forecast range of 4-4.8 per cent, said Bank Negara Malaysia (BNM).
Its governor Datuk Seri Abdul Rasheed Ghaffour said the national economy also advanced by 6.3 per cent in the fourth quarter of 2025 (4Q 2025), driven mainly by domestic demand.
“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,” he said in a statement today.
It was previously reported that Malaysia's economy grew by 5.1 per cent for the full year of 2024 and 5.0 per cent in 4Q 2024.
Rasheed added that, in the external sector, exports continued to strengthen, driven mainly by higher 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.
“Meanwhile, 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,” he said.
On the supply side, growth was mainly driven by expansion in the services and manufacturing sectors.
Higher growth in the services sector was mainly driven by consumer-related subsectors, government services, and the 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," Rasheed said.
Meanwhile, the agricultural sector strengthened, reflecting higher growth in palm oil amid less severe floods than last year.
On a quarter-on-quarter, seasonally adjusted basis, growth expanded by 0.8 per cent.
He noted that the growth momentum is expected to continue in 2026, supported by resilient domestic demand and exports.
“On the domestic front, household spending will benefit from the continued support of employment and wage growth, as well as government policy measures.
“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 (13MP)," Rasheed said.
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,” he said.
