Malaysia’s economy logged its fastest growth since the second quarter of 2024, fueled by robust domestic demand, official data showed on Friday.
Gross domestic product expanded 5.7 percent year-on-year in the second quarter, accelerating from the 5.2 percent growth in the prior quarter, advance estimates from the Department of Statistics revealed.
The latest pace of expansion was the strongest since the second quarter of 2024, when GDP was up 5.9 percent.
For the year of 2025 as a whole, Malaysia’s economy grew 4.9 percent, slightly weaker than the 5.1 percent growth seen in 2024.
The growth in tourism activities during public and school holidays, increased expenditure on school-related items, festive spending during Deepavali and Christmas, stable labor market conditions and sustained investment activity contributed to the strengthening of household consumption, Chief Statistician of Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin said.
“As ASEAN Chairman, Malaysia hosted few hundreds of meetings, conferences, and various large-scale international events across the country’s major cities. Meanwhile, the Sabah state election also took place in the fourth quarter of 2025,” he said.
These important events directly contributed to stimulate economic activity in the fourth quarter.
The production-side of GDP showed that services sector was the major driver of growth. Services output moved up 5.4 percent. Manufacturing expanded 6.0 percent, while growth in construction remained strong at 11.9 percent.
At the same time, the agriculture sector and the mining and quarrying sector advanced 5.1 percent and 1.1 percent, respectively.
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