Kuala lumpur: Malaysia has demonstrated resilient economic growth this year, with a stronger-than-expected performance in the third quarter of 2025.

According to BERNAMA News Agency, the World Bank’s lead economist for Malaysia, Apurva Sanghi, noted that the country’s approximately four percent growth across the first three quarters of the year is a positive development. “The world is not in a good place with slowing growth, stalling investment, and soaring debt. So from that perspective, Malaysia is doing quite well,” Sanghi remarked on the sidelines of the National Economic Outlook Conference.

However, Sanghi highlighted concerns over global challenges that could affect Malaysia in 2026. These include slowing global growth, weaker investment trends, and reduced foreign direct investment flows into developing countries. He emphasized the need to wait for the fourth quarter numbers, with the next economic update expected in April. Despite the challenges, Sanghi acknowledged the resilience shown in the previous quarters and noted that the real test would come in the next year.

In October, the World Bank revised its projection for Malaysia’s economic growth in 2025 to 4.1 percent, up from an earlier forecast of 3.9 percent. While foreign direct investment inflows into Malaysia have been rising, driven largely by data center investments, Sanghi advised policymakers to evaluate their long-term impact on job creation and sustainability.

He also commended the Malaysian government’s subsidy rationalization program, highlighting reforms in areas such as water tariffs, large-scale industrial uses of electricity, diesel, chicken, and egg, as evidence of a well-implemented strategy.