13.02.202604:26:16UTC+00Malaysia Q4 GDP Growth Stronger Than Initially Thought

Malaysia’s economy grew 6.3% year-on-year in Q4 2025, revised up from an initial estimate of 5.7% and accelerating from 5.4% in Q3. This was the strongest quarterly expansion since Q4 2022, underpinned by broad-based gains across key sectors.

In agriculture, output increased 5.4% (vs 0.1% in Q3), supported in particular by a 16.2% surge in oil palm production. Manufacturing growth also strengthened to 6.1% (vs 4.1%), driven largely by a 12% rise in vegetable and animal oils and fats. The services sector expanded 6.3% (vs 5.5%), led by wholesale and retail trade, which grew 5.7%.

In contrast, growth moderated in mining and quarrying, easing to 2% from 9.7%, and in construction, which slowed slightly to 11% from 11.8%.

From the expenditure perspective, government consumption rose 8% (vs 7.1%), household consumption increased 5.3% (vs 5%), and fixed investment accelerated to 9.3% (vs 7.4%). Net exports, however, detracted from overall growth as imports jumped 7.9% (vs 0.7%), outpacing a 3.9% increase in exports (vs 1.7%).

On a quarter-on-quarter basis, GDP grew 0.8%, down from 2.7% in Q3. For the full year 2025, the economy expanded by 5.2%.