Selangor is setting its sights on becoming Malaysia’s first state with a RM500 billion economy after recording a stronger-than-expected economic performance in 2025.
In a statement, Selangor Menteri Besar Amirudin Shari said the state’s economy expanded by RM28 billion to RM460.1 billion in 2025, according to the latest official data released by the Department of Statistics Malaysia.
The RM28 billion increase was more than double the growth recorded by any other state and exceeded the RM455.3 billion forecast by Universiti Putra Malaysia and the Selangor Research Institute.
The strong performance lifted Selangor’s contribution to Malaysia’s gross domestic product (GDP) to 26.5%, up from 26.2%, while expanding its economy to 1.7 times the size of Kuala Lumpur’s and 2.7 times that of Johor.
Selangor’s economy grew 6.3% in 2025, outperforming the national growth rate of 5.2%.
Growth was driven primarily by the services sector, which expanded by RM15.9 billion, followed by manufacturing at RM5.3 billion and construction at RM3.7 billion.
The state now accounts for 35.9% of Malaysia’s construction activity, 32.8% of manufacturing output and 27.1% of the country’s services sector.
Amirudin attributed the achievement to the successful implementation of the Rancangan Selangor Pertama (RS-1), the state’s five-year socio-economic development plan covering 2021 to 2025.
During the RS-1 period, Selangor’s economy expanded by 33.9%, or RM116.6 billion, from RM343.5 billion before the plan was launched to RM460.1 billion in 2025.
He said the growth was driven not only by government policies but also by the contributions of workers, entrepreneurs and businesses across the state, including participants in the PLATS programme, Jobcare beneficiaries, engineers, technicians and manufacturers.
Looking ahead, Amirudin said Selangor must not become complacent and should pursue the next milestone of becoming the first state in Malaysia with a RM500 billion economy.
He said achieving the target would require stronger productivity across the public sector, private companies and the workforce, while the state government would continue prioritising initiatives to improve the cost of living and ensure economic growth translates into better quality of life for Selangor residents.
