Kuala lumpur: Malaysia's economy is projected to grow by 5.7 per cent in the fourth quarter of 2025 (4Q 2025), supported by a strong performance in the main economic sectors and robust domestic demand, according to the Department of Statistics Malaysia (DOSM).

According to BERNAMA News Agency, Chief statistician Datuk Seri Dr Mohd Uzir Mahidin stated that 4Q's economic growth was driven by a 5.4 per cent growth in the services sector. The manufacturing sector grew by 6.0 per cent, up from 4.1 per cent in the third quarter of 2025, while the construction sector remained strong at 11.9 per cent. The agriculture sector registered an improvement to 5.1 per cent, and the mining and quarrying sector recorded an increase of 1.1 per cent.

Advance estimates from DOSM for 4Q growth at 5.7 per cent indicate an acceleration from the 5.2 per cent expansion observed in the previous quarter. This growth rate is the highest since the second quarter of 2024, which saw a 5.9 per cent increase.

DOSM projects that Malaysia's economy for the entirety of 2025 is estimated to grow by 4.9 per cent, nearing the 5.1 per cent growth achieved in 2024. Mohd Uzir highlighted that domestic demand continued to strengthen 4Q's economic growth, bolstered by factors such as increased tourism during public and school holidays, expenditure on school-related items due to changes in the 2026 academic calendar, festive spending, stable labour market conditions, and sustained investment activity.

He further noted that as the ASEAN Chairman, Malaysia hosted numerous international events and conferences across major cities, and the Sabah state election took place in 4Q 2025, contributing directly to economic activity.

DOSM emphasized that the Industrial Production Index (IPI) showed robust growth, with a six per cent increase in October and 4.3 per cent in November, reflecting strengthening industrial activity, particularly in the manufacturing sector, which expanded by 6.5 per cent in October and 4.9 per cent in November. This growth was driven by export-oriented industries.

Exports recorded a 15.7 per cent growth in October before moderating to 7.0 per cent in November 2025, while imports increased from 10 per cent in October to 15.8 per cent in November. Consequently, Malaysia's total trade continued to show double-digit growth, with 13.0 per cent in October and 11.1 per cent in November 2025.

For the full year of 2025, DOSM estimated Malaysia's gross domestic product (GDP) to expand by 4.9 per cent compared with 5.1 per cent in the previous year. All sectors reported positive growth, with the services sector growing by 5.1 per cent, the manufacturing sector by 4.5 per cent, the construction sector maintaining double-digit growth at 12.4 per cent, the agriculture sector easing to 2.2 per cent, and the mining and quarrying sector posting a marginal growth of 0.5 per cent.

Subsequent to these advance estimates, preliminary GDP data providing a detailed and comprehensive analysis of the economic performance for the fourth quarter of 2025 will be released on Feb 13, 2026.