Kuala lumpur: Malaysia’s robust 5.2 percent gross domestic product (GDP) growth in the third quarter of 2025 sets the nation on a promising path to meet the upper end of its 2025 growth target of 4.0 to 4.8 percent, according to Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who also serves as Finance Minister, highlighted the role of resilient domestic demand, a stable labor market, and continued investments in high-growth, high-value sectors in laying a solid foundation for economic momentum throughout the remainder of the year.

According to BERNAMA News Agency, Anwar stated that Malaysia’s economy expanded by 5.2 percent in 3Q 2025 compared to 4.4 percent in 2Q 2025, driven by strong performance across all sectors. This growth was anchored by resilient domestic demand, which remained robust despite external challenges and global uncertainties.

Domestic demand emerged as a key growth driver, registering a 5.8 percent increase from 7 percent in 2Q 2025, supported by strong household spending, favorable la
bor market conditions, and controlled inflation. Anwar attributed the sustained consumer spending to the government’s efforts to raise income levels and the implementation of social assistance programs such as Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah.

Improvements in exports also contributed to Malaysia’s economic growth, reflecting the effects of front-loading activities. For the first nine months of 2025, the economy expanded by 4.7 percent, showcasing the country’s resilience and robust fundamentals amid global challenges.

Anwar noted that the 3Q 2025 performance aligned with positive economic indicators, including a 3.1 percent growth in total employment to 17 million persons and an unemployment rate remaining steady at 3 percent, the same level as in 2Q 2025.

Additionally, stable inflation at 1.3 percent, a 3.5 percent increase in manufacturing sector sales value to RM500.1 billion, a 4.9 percent rise in the Industrial Production Index, and a 3.7 percent expansion in total trade to RM769.8 bil
lion with a trade surplus of RM50.3 billion were notable aspects of the quarter’s performance.

The current account of the balance of payments recorded a surplus of RM12.2 billion, equivalent to 2.5 percent of gross national income, highlighting the resilience of the goods and services accounts. After 14 years of deficits, the services account recorded a surplus of RM0.7 billion.

Foreign direct investment showed a net inflow of RM8.5 billion, while the ringgit remained stable at RM4.2070 against the US dollar, rising 0.1 percent, reinforcing its position among Asia’s top-performing currencies.

Anwar reiterated the MADANI government’s commitment to advancing the MADANI Economy Framework agenda through structural and fiscal reforms aimed at improving productivity, enhancing competitiveness, and promoting digitalization and high-quality investments.

The government’s resolve to reduce the fiscal deficit to 3.8 percent in 2025 and 3.5 percent in 2026 remains firm. Looking ahead, the 13th Malaysia Plan, supporte
d by the Fourth MADANI Budget, is expected to propel the economic trajectory and bolster efforts to safeguard the well-being of the rakyat while ensuring that the benefits of growth are widely shared.