FX.co ★ Malaysia Q4 GDP Growth Strongest in 1-1/2 Years

Malaysia's economy experienced a notable upswing in the fourth quarter of 2025, with a year-over-year growth rate of 5.7%, an acceleration from the 5.2% expansion in the third quarter, according to preliminary data. This marked the most robust growth since the second quarter of 2024. The uptick in economic performance was primarily driven by a surge in manufacturing activities, which increased by 6.0%, up from the previous quarter's 4.1%. This growth was bolstered by higher outputs in sectors such as electrical and optical products, vegetable and animal oils, fats and food processing, and non-metallic mineral products, alongside basic metal and fabricated metal products.

The agriculture sector saw a substantial increase, soaring to 5.1% from a modest 0.4% growth in the previous quarter, fueled by a recovery in the oil palm sub-sector. Furthermore, the construction sector sustained its remarkable expansion, posting a double-digit growth of 11.9%, slightly up from the 11.8% recorded in Q3. In contrast, the mining and quarrying sectors experienced continued growth, though at a more modest rate of 1.1% compared to 9.7% in Q3.

For the entirety of 2025, Malaysia's economy grew by 4.9%, slightly lower than the 5.1% increase seen in 2024. On a quarterly basis, the economy expanded by 3.0%, following a revised increase of 5.4% in the third quarter, marking the strongest growth since the fourth quarter of 2021.