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Malaysia's economy beat forecasts to grow 4.9% in 2025: Advance estimate

01:58 Min

Malaysia's economy estimated to have grown 5.7% on-year in Q4 2025, up from 5.2% in the previous quarter. The 4.9% figure for the entire year also beat forecasts by the government and central bank. Economic growth was driven mainly by the services sector, supported by stronger activity in wholesale and retail trade, transport, as well as food and accommodation services. Despite the stronger-than-expected showing, economists warned Malaysia remains vulnerable to external shocks, particularly shifts in demand from major trading partners. Afifah Ariffin reports from Kuala Lumpur.

Malaysia's economy estimated to have grown 5.7% on-year in Q4 2025, up from 5.2% in the previous quarter. The 4.9% figure for the entire year also beat forecasts by the government and central bank. Economic growth was driven mainly by the services sector, supported by stronger activity in wholesale and retail trade, transport, as well as food and accommodation services. Despite the stronger-than-expected showing, economists warned Malaysia remains vulnerable to external shocks, particularly shifts in demand from major trading partners. Afifah Ariffin reports from Kuala Lumpur.

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