Malaysia's economy expanded 5.2% in the third quarter (3Q) of the year, a faster rate of expansion compared to 4.4% the preceding quarter, as the country recorded higher net exports while maintaining domestic demand.
The gross domestic product (GDP), which was in line with market expectations, puts the country's economic outlook on track to achieving growth of 4% to 4.8% in 2025, said Bank Negara in its announcement.
00:00In the third quarter of 2025, the Malaysian economy recorded a strong growth of 5.2%.
00:12This was contributed by household spending, steady investment activities and continued export growth,
00:20supported by E&E sector, robust tourism activity and strong recovery in mining related export.
00:30On seasonal adjusted quarter-on-quarter basis, GDP showed stronger growth momentum of 2.4%, higher than the 2.2% recorded in the second quarter of 2025.
00:45On the expenditure side, domestic demand was driven mainly by sustained domestic demand and higher net export.
00:53Private consumption was supported by positive labour market conditions and policy measures.
01:01Meanwhile, investment growth was driven by further capacity expansion by firm and robust construction activities,
01:10as well as continued capital expenditure by public cooperation.
01:15On the external front, the expansion in net export was driven by improving export and a sharper moderation in import,
01:26particularly for intermediate and capital import.
01:30On the supply side, all sectors continue to expand.
01:34Sustained growth in the services sector was driven by consumer-related sectors.
01:39The manufacturing sector registered a higher growth driven by stronger production in E&E and consumer-related goods.
01:49The construction sector continued to record robust growth across all sub-sectors.
01:57In the commodity sectors, the agriculture sector experienced a moderation driven by slower growth in rubber,
02:06oil pump and other agriculture sub-sectors.
02:09However, the rebound in mining sector reflected recovery in LNG and crude oil production from post-planned maintenance.
02:22Malaysia's economy grew by 4.7% in the first nine months of this year.
02:27And this is well within our forecast range of between 4% to 4.8%.
02:32In fact, at this rate for this year, we may record a growth rate that is closer to the upper range of this forecast.
02:42And moving into 2026, as announced by the Ministry of Finance last month,
02:48economic growth is expected to expand between 4% to 4.5% next year and will be driven by domestic demand.
02:56Household spending will be supported by the continued employment and wage growth,
03:03the income-related policy measures, and also the additional cash transfers by the government.
03:09Furthermore, investment activities will be sustained amid the progress of infrastructure projects,
03:16realisation of approved investments, and the implementation of our national master plans.
03:22On the external front, we expect moderate export performance as tariff and global demand pressures
03:30will be offset by the continued demand for E&E goods, inbound tourism, and recovery in the mining-related exports.
03:40Headline inflation remained unchanged during the quarter at 1.3%, while core inflation increased to 2%.
03:48The higher core inflation added some upward pressure on headline inflation.
03:53However, this was offset by declines in some administered prices, namely electricity and diesel,
04:01which kept the headline inflation stable for the quarter.
04:05In part, the lower administered prices reflected the impact of recent policies,
04:11namely electricity tariff restructuring, which resulted in lower electricity bills
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