Malaysia's GDP To Grow At 4.6 Pct In 2025 -- MBSB IB
KUALA LUMPUR, Dec 1 (Bernama) -- MBSB Investment Bank Bhd (MBSB IB) projected Malaysia’s gross domestic product (GDP) to grow at 4.6 per cent this year.
This is driven by robust growth in the third quarter of 2025 (3Q 2025) and fewer negative impacts of tighter United States trade rules on Malaysia’s external trade and production activities, it said in a research note today.
The investment bank said the country’s GDP grew at a faster pace by 5.2 per cent year-on-year (y-o-y) in 3Q 2025, compared to 2Q 2025 (4.4 per cent y-o-y).
It said this was slightly higher than its expectation of 5.1 per cent y-o-y growth as there was a slightly sharper moderation in the services sector.
“Apart from the recovery in mining output, Malaysia continues to benefit from the global technology upcycle.
“Going into 2026, we expect the resilience in domestic demand will continue to drive Malaysia’s economic growth, backed by a healthy labour market and stable inflation,” it said.
MBSB IB said the country’s leading index rebounded and grew by 0.8 per cent y-o-y in September 2025 after falling -0.3 per cent y-o-y over the previous two months.
It said the performance was driven by improvement in two components, led by a sharp double-digit expansion in the number of new companies registered (16 per cent y-o-y) and real imports of semiconductors (15.8 per cent y-o-y).
The investment bank said Malaysia’s industrial production index growth picked up to 5.7 per cent y-o-y in September 2025 (August 2025: 4.8 per cent y-o-y), above its estimate and market expectations, driven by continued growth across all three major sectors.
“Malaysia’s labour market remained resilient in September 2025, with the unemployment rate holding steady at three per cent for the fifth consecutive month -- the lowest level in a decade.
“Malaysia’s distributive trade accelerated to 6.6 per cent y-o-y in September 2025 (August 2025: 4.9 per cent y-o-y), supported by the stronger expansion in all segments,” it said.
-- BERNAMA
