Malaysia GDP Growth Exceeds Estimate

(RTTNews) - Malaysia's economy expanded at a faster than estimated pace in the first quarter, underpinned by household spending and investment, data from the Department of Statistics showed Friday.

Gross domestic product logged an annual growth of 5.4 percent, which was revised up from the initial estimate of 5.3 percent. This followed a revised 6.2 percent expansion in the fourth quarter of 2025.

The production-side breakdown of GDP showed that the services sector remained the main impetus of economic growth, while other sectors also recorded positive growth except for the mining and quarrying sector.

Services output grew 5.6 percent and manufacturing advanced 5.9 percent. Meanwhile, mining and quarrying shrank 2.1 percent and agriculture grew only 2.6 percent. On the expenditure-side, household consumption moved up 4.7 percent and government spending rose 4.1 percent. Gross fixed capital formation posted a strong growth of 7.3 percent.

Exports registered an increase of 5.2 percent and imports and imports gained 4.6 percent.

In 2025, the economy expanded 5.2 percent, the same rate as seen in 2024.

Last week, the central bank maintained its interest rate for the fifth straight month, at 2.75 percent. Bank Negara Malaysia observed that uncertainties surrounding the duration and severity of the war in the Middle East will affect the outlook of both domestic growth and inflation.