Overview:
- Malaysia’s economy grew 5.2% in 2025, its fastest pace in three years, driven by strong domestic demand, exports and investment.
- Fourth‑quarter GDP surged 6.3% year‑on‑year, the quickest in twelve quarters and above economists’ expectations.
- Bank Negara Malaysia expects growth momentum to continue into 2026, supported by resilient household spending and robust export activity.
- The central bank maintained its key interest rate at 2.75% amid steady economic conditions, modest inflation and a positive outlook.
- Malaysia continues to face uncertainties from U.S. tariffs, including a 19% levy on goods exported to the United States.
Malaysia GDP growth 2025 came in at 5.2%, topping the official 4%–4.8% forecast range, as a 6.3% year-on-year surge in the fourth quarter, the fastest in 12 quarters, underscored resilient domestic demand, firmer exports and stronger investment outlays.
Growth beats forecasts
According to government and central bank data, the full-year print of 5.2% edged past 2024’s 5.1%, while Q3 2025 was revised up to 5.4%; on a seasonally adjusted basis, Q4 GDP rose 0.8% versus 2.7% in Q3.
Bank Negara Malaysia (BNM) said the outturn exceeded expectations as household spending benefited from employment and wage gains, with capex supported by multi‑year projects and the realisation of approved investments, key drivers of Malaysia GDP growth 2025.
“This growth momentum is expected to continue in 2026, supported by resilient domestic demand and exports,” Abdul Rasheed Ghaffour, Governor, Bank Negara Malaysia said.
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Guest’s Ideas:
Shaik Abdul Rasheed Ghaffour
Governor
Bank Negara Malaysia
Shaik Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, was appointed to a five‑year term beginning 1 July 2023 and also chairs the Bank’s Board, Monetary Policy Committee and Financial Stability Executive Committee.
A veteran who joined the Bank in 1988, Rasheed has held key roles across monetary policy, reserves management, financial markets, sector development and regulation. He later became Deputy Governor in 2016. He has led major policy and reform initiatives, advised the Government on pandemic response, and contributed to the Financial Sector Masterplan and Blueprints. Internationally, he has served on platforms such as the Islamic Financial Services Board, BIS and IMF. A Kuala Lumpur native, Rasheed studied at St. John’s Institution and holds degrees from Universiti Malaya and the University of Oxford.
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