Malaysia GDP Expands at Fastest Rate in a Year

Malaysia’s economy expanded 5.2% year-on-year in Q3 2025, accelerating from 4.4% growth in Q2 and marking the fastest expansion in a year, preliminary estimates showed. The faster growth was driven by manufacturing activity, which rose 4.0% (up from 3.7% in Q2), supported by higher output in electrical and optical products, vegetable and animal oils, fats and food processing, and non-metallic mineral products, basic metal and fabricated metal products. Additionally, activity strongly rebounded in mining and quarrying, rising 10.9% after a 5.2% contraction in Q2. While still contributing positively to the economy, growth eased in construction (11.2% vs 12.1%), and agriculture (0.4% vs 2.1%), due to declines in oil palm and rubber sub-sectors. Activity in services remained steady at 5.1%. On a quarterly basis, the economy expanded 5.5%, picking up from 1.0% in the previous quarter.