Overview

Malaysia's economy expanded 5.2 per cent in 2025, sustaining the growth recorded in the preceding year. The expansion was mainly underpinned by the Services and Manufacturing sectors, which contributed 82.5 per cent of the total Gross Domestic Product (GDP). Private final consumption expenditure remained the main contributor on the demand side, accounting for 60.5 per cent of GDP in 2025. Malaysia’s GDP in 2025 stood at RM2.03 trillion at current prices and RM1.74 trillion at constant prices. Hence, Gross National Income per capita increased to RM57,200 as compared to RM54,870 in 2024.

The Services sector expanded by 5.4 per cent in 2025, maintaining the same growth as in 2024. The expansion was attributed by a positive growth across all major sub-sectors. Wholesale & retail trade sub-sector rose by 4.9 per cent (2024: 4.3%), followed by Information & communication at 7.4 per cent (2024: 3.5%). Transportation & storage sub-sector continued to register a strong growth of 9.0 per cent (2024: 10.9%). The Manufacturing sector increased 4.5 per cent (2024: 4.2%) in 2025. The growth was supported by improvements across major sub-sectors, particularly Electronic components, communication equipment and consumer electronics, which increased by 9.9 per cent (2024: 4.0%). In addition, Food processing registered a strong growth of 9.1 per cent (2024: 4.7%), while Vegetable and animal oils & fats expanded by 9.9 per cent (2024: 5.3%). The Agriculture sector grew at 2.2 per cent in 2025 as compared to 3.4 per cent in 2024. The performance was primarily supported by the Oil palm sub-sector, which rose to 4.7 per cent (2024: 5.1%). Other agriculture and Livestock sub-sectors registered a growth of 1.7 per cent (2024: 2.6%) and 2.2 per cent (2024: 5.4%), respectively. Nevertheless, Rubber, Fishing and Forestry & logging sub-sectors was observed a decrease in 2025. The Mining and quarrying sector increased marginally at 0.6 per cent as against 1.2 per cent in 2024. The growth was driven by the Natural gas sub-sector, which grew at 0.5 per cent (2024: 2.3%). This was followed by Other mining & quarrying and support services sub-sector, which increased by 2.4 per cent (2024: 4.4%) while Crude oil & condensate sub-sector recorded a marginal growth of 0.2 per cent (2024: -1.3%) in 2025. The Construction sector posted a double-digit growth of 12.2 per cent in 2025 as compared to 17.6 per cent in the previous year. The performance was supported by positive growth across all segments, particularly the Non-residential buildings which expanded by 16.6 per cent (2024: 13.9%) and the Specialised construction activities increased by 12.8 per cent (2024: 21.6%).

Private final consumption expenditure expanded to 5.3 per cent as against to 4.8 per cent in the preceding year. The expansion was driven by the consumption expenditures of Transport, Restaurants & hotels and Food & non-alcoholic beverages. The share of goods expenditure reduced from 57.5 per cent to 56.6 per cent in 2025, influenced by nondurable goods (71.6%) followed by durable goods (18.1%). Conversely, the share of expenditure on services to total private consumption expenditure rose to 43.4 per cent (2024: 42.5%). Gross fixed capital formation (GFCF) expanded to 9.6 per cent (2024: 12.1%). The expansion was mainly influenced by the Structure and Machinery & equipment, which grew at 11.1 per cent (2024: 15.5%) and 8.9 per cent (2024: 9.1%), respectively. Furthermore, Other assets moderated to 3.3 per cent (2024: 6.5%) in 2025. In terms of sector, the growth of GFCF was largely contributed by the Private sector (share: 77.3%), with a growth of 9.4 per cent as compared to 12.4 per cent in 2024. In addition, the Public sector accelerated to 10.3 per cent from 11.1 per cent in the preceding year. Government final consumption expenditure elevated to 5.3 per cent from a growth of 4.6 per cent in the previous year. The growth was attributed to education and economic affairs expenditure which has stimulated the overall government consumption in 2025. Exports eased to 4.9 per cent (2024: 8.6%). The slower momentum was attributed to the moderation in Exports of goods and services, which recorded a growth of 2.9 per cent (2024: 5.9%) and 15.2 per cent (2024: 24.2%), respectively. The share of Exports of goods amounted to 81.5 per cent of total Exports. Imports grew by 6.3 per cent as compared to 8.7 per cent in the preceding year. The performance was supported by Imports of goods, which increased 6.6 per cent (2024: 9.6%) and accounted for 81.6 per cent of total Imports. Meanwhile, Imports of services remained at 5.0 per cent in 2025.

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Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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