Overview

Malaysia’s economic growth estimated at 4.4 per cent, backed by domestic activities and steady demand

Malaysia’s advance GDP estimates showed a growth of 4.4 per cent in the first quarter of 2025, compared to 5.0 per cent in the preceding quarter. The performance was underpinned by growth in the Services, Manufacturing and Construction sectors. Conversely, the Mining & quarrying sector remained decline in this quarter. In terms of quarter-on-quarter performance, Malaysia’s economy contracted by 3.7 per cent, from 2.7 per cent growth in the fourth quarter of 2024.

The Services sector expanded by 5.2 per cent, compared to 5.5 per cent in the fourth quarter of 2024. The sector’s performance was spearheaded by positive growth across all sub-sectors, notably the Wholesale & retail trade, Transportation & storage and Information & communication sub-sectors. The Manufacturing sector increased by 4.2 per cent, slower than 4.4 per cent in the previous quarter. The growth was supported by better performance in Electrical, electronic & optical products, Vegetable and animal oils & fats and food processing as well as Petroleum, chemical, rubber & plastic products. The Mining and quarrying sector continued to decline, recording a 4.9 per cent contraction in the first quarter of 2025 compared to 0.9 per cent decline in the fourth quarter of 2024. The performance was influenced by lower production in the Crude oil & condensate and Natural gas sub-sectors in this quarter. The Agriculture sector increased by 0.7 per cent in the first quarter of 2025, compared to a decline of 0.5 per cent in the previous quarter. The performance was supported by better growth in the Fishing and Other agriculture sub-sectors. Meanwhile, the Oil palm sub-sector experienced a downturn this quarter. The Construction sector registered double-digit growth of 14.5 per cent (Q4 2024: 20.7%) this quarter. The performance was attributed to moderate growth across all segments, led by Specialised construction activities and Residential buildings in this quarter. 

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