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Malaysia’s economy grew 5.7% on year in Q4 2025, official advance estimate shows

By Thomson Reuters Jan 15, 2026 | 10:04 PM

KUALA LUMPUR, Jan 16 (Reuters) – Malaysia’s economy grew 5.7% in the fourth quarter of 2025 from a year ‍earlier, official advance estimates showed on Friday, its fastest pace in more than a year.

Growth in the October-to-December period was faster than the 5.2% expansion in the third quarter ‌and the quickest since the ‌second quarter of 2024, when the economy grew 5.9%.

The rise was driven by key sectors including services, manufacturing and construction, the statistics ​department said in a statement.

“Economic growth in the fourth quarter of 2025 ‍was also supported by ​the continued strengthening of domestic ​demand,” Chief Statistician Mohd Uzir Mahidin said.

Malaysia’s ‍full-year economic growth is expected to come in at 4.9% in 2025, the department said, exceeding the central bank’s forecast range of between 4% and 4.8% but ‍just below the 5.1% expansion recorded in 2024.

Uncertainties around global trade and tariffs were expected to ‍weigh ‍on the economy with the ​government projecting growth of between ​4% ⁠and 4.5% this year.

The United ‌States has imposed a 19% tariff on most imports from Malaysia.

Final fourth-quarter and 2025 GDP figures are expected to be released on February 13.

(Reporting by Rozanna Latiff; Editing by ⁠David Stanway)