Malaysia’s economy is estimated to have grown 5.7% in the fourth quarter of 2025, exceeding official expectations and signalling stronger-than-anticipated momentum heading into the end of the year, according to advance gross domestic product data released by the Department of Statistics Malaysia.
The Ministry of Economy said the stronger fourth-quarter performance lifted full-year 2025 growth to an estimated 4.9%, surpassing the government’s official forecast range of 4.0% to 4.8%, despite ongoing global uncertainties and external headwinds.
The acceleration in economic activity during the final three months of the year was driven mainly by firmer domestic demand, alongside continued expansion in the services and manufacturing sectors.
Based on the advance estimates, average annual GDP growth during the Twelfth Malaysia Plan (12MP) period from 2021 to 2025 is projected at 5.2%, exceeding the earlier estimates outlined in the Thirteenth Malaysia Plan document.
Economy Minister Akmal Nasrullah Mohd Nasir said the performance reflected the effectiveness of current economic policies, noting, “This achievement demonstrates the effectiveness of the government’s economic direction and strategy in navigating global uncertainties, restructuring the economy and sustaining resilient domestic demand.”
He added that the implementation of more than 170 socio-economic development initiatives under the 12MP had contributed to the outcome, alongside targeted cash assistance programmes such as Sumbangan Asas Rahmah and Sumbangan Tunai Rahmah, which supported household spending.
“This is a positive momentum that reflects Malaysia’s strong and competitive economic fundamentals,” Akmal said, adding that 2026 marks the start of the implementation phase of the 13MP.
The government said it remains confident the country is on track to achieve high-income nation status by 2030 under the government’s economic framework.
