Malaysia’s 4.4 Pct 1H 2025 GDP Growth Shows MADANI Economy Policies Delivering Results -- Amir Hamzah
PUTRAJAYA, Aug 15 (Bernama) -- Despite global uncertainties, Malaysia’s gross domestic product (GDP) grew 4.4 per cent in the first half of 2025, proving that the MADANI Economy policies are yielding results for the nation and, most importantly, the rakyat, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said unemployment narrowed to three per cent in the second quarter of 2025 (2Q 2025) from 3.1 per cent in the preceding quarter, while headline inflation moderated to 1.3 per cent compared to 1.5 per cent previously, reflecting Malaysia’s favourable economic prospects.
In a statement today, Amir Hamzah said robust domestic demand supported the growth of the Malaysian economy against a global backdrop marked by trade and geopolitical uncertainties, sustaining growth at 4.4 per cent in 2Q 2025.
This, he said, resulted in the GDP growth for the first half of 2025 at 4.4 per cent, comfortably within the official projection band of four per cent to 4.8 per cent.
Domestic demand rose seven per cent in 2Q 2025, outpacing the six per cent growth recorded in the preceding quarter, driven by thriving household spending, a strong labour market, benign inflation and buoyant private-sector investment.
On the supply side, growth in the quarter was buoyed by the resilient performance of the services (5.1 per cent) and manufacturing (3.7 per cent) sectors.
The services sector benefited from increased consumer spending and robust tourism activities, while the continued expansion of both export- and domestic-oriented industries sustained manufacturing growth.
“The ringgit’s appreciation of 5.3 per cent against the US dollar in 2Q 2025, making it one of the best-performing currencies in Asia, reflects investor confidence in the country’s economic and fiscal management. The MADANI Government remains committed to narrowing the fiscal deficit to 3.8 per cent in 2025,” Amir Hamzah said.
He said that while recent tariff measures pose new challenges for affected industries, the government is closely monitoring the potential impact and remains committed to providing targeted support to safeguard competitiveness and minimise trade disruptions.
“These measures, alongside broader structural reforms, have underpinned the quarter’s steady and broad-based growth momentum,” he added.
Guided by the MADANI Economy Framework and the recently announced 13th Malaysia Plan (13MP), the Ministry of Finance is formulating Budget 2026 through comprehensive engagements with stakeholders across key sectors and states.
As stated in the Pre-Budget Statement 2026 issued recently, priority will be placed on advancing economic and structural reform measures to ensure that the benefits of growth are shared equitably and sustainably among the rakyat.
These efforts, Amir Hamzah said, are critical to strengthening economic fundamentals and ensuring that Malaysia remains agile and resilient in a dynamic global environment.
-- BERNAMA