KUALA LUMPUR: Malaysia’s economy recorded a 4.4 per cent expansion in the second quarter of 2025 (2Q25), underpinned by strong domestic demand and sustained export performance, according to Bank Negara Malaysia.
The gross domestic product (GDP) growth matched the first quarter’s pace of 4.4 per cent. On a quarter-on-quarter seasonally adjusted basis, the economy grew by 2.1 per cent, up from 0.7 per cent in the preceding quarter.
Bank Negara said household spending rose, supported by a robust labour market and income-boosting measures such as higher minimum wages and increased civil service salaries.
Private and public investments also picked up momentum, fuelled by the implementation of new and ongoing projects.
“In the external sector, export growth slowed mainly due to weaker commodity-related exports, partly offset by continued strength in electrical and electronics shipments and resilient tourism activity.
“At the same time, imports grew faster, driven by strong demand for capital goods in line with higher investment activity,” the central bank said.
On the supply side, the services and manufacturing sectors led growth. The services sector benefited from consumer-related and government services, while domestic-oriented manufacturing clusters supported industrial expansion.
“Overall growth was dampened by a decline in the mining sector, reflecting lower commodity output,” it added.
