Overview

Malaysia’s GDP estimated to grow 4.5 per cent,
fuelled by robust domestic demand amidst global headwinds

Malaysia’s advance GDP estimates increased 4.5 per cent in the second quarter of 2025 as compared to 4.4 per cent in the previous quarter. The economy’s performance was mainly supported by positive growth in Services and Manufacturing sectors. In addition, the Construction and Agriculture sectors recorded better growth during the quarter. Conversely, the Mining & quarrying sector continued to experience a contraction. In term of quarter-on-quarter performance, Malaysia’s economy grew 1.0 per cent, compared to a contraction of 3.5 per cent in the first quarter of 2025.

The Services sector increased to 5.3 per cent in the second quarter of 2025 as compared to 5.0 per cent in the preceding quarter. The better performance was underpinned by positive growth across all sub-sectors, with Wholesales & retail trade, Transportation & storage and Business services being the main contributors. In the second quarter of 2025, the Manufacturing sector recorded a growth of 3.8 per cent as compared to 4.1 per cent in the preceding quarter. This growth was supported by the production of Electrical, electronic & optical products, Vegetable and animals oils & fats and food processing products and Non-metallic mineral products, basic metal & fabricated metal products.

The Agriculture sector grew by 2.0 per cent in the second quarter of 2025, compared to 0.6 per cent in the previous quarter. The growth was driven by the Palm Oil, Other Agriculture and Livestock sub-sectors. Meanwhile, the Rubber sub-sector contracted during the quarter. The Mining & quarrying sector continued to decline, registering a contraction of 7.4 per cent in the second quarter of 2025 compared to 2.7 per cent decrease in the first quarter of 2025. The performance was attributed by lower production in the Natural gas and Crude oil & condensate sub-sectors in this quarter. The Construction sector registered double-digit growth of 11.0 per cent in the second quarter of 2025 as compared to 14.2 per cent in the previous quarter. The performance was supported by strong growth across all segments, mainly driven by Non-residential buildings and Specialised construction activities in this quarter.

Overall, Malaysia’s economy grew at 4.4 per cent for the first half of the year 2025 as compared to 5.0 per cent in the same period in 2024. The Department of Statistics Malaysia (DOSM) is committed to compile and disseminate statistics that serve the needs of statistical users. DOSM will release the actual GDP for the second quarter of 2025 on 15 August 2025.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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