KUALA LUMPUR, Oct 17 — Malaysia’s economy is projected to grow by 5.2 per cent in the third quarter of 2025 (3Q 2025), based on advance gross domestic product (GDP) estimates by the Department of Statistics Malaysia (DOSM).
The figure represents an increase from the 4.4 per cent growth in the previous quarter, said chief statistician Datuk Seri Mohd Uzir Mahidin in a statement today.
Growth is expected to be underpinned by solid performance in all main sectors, and domestic demand continued to be the primary engine of growth, particularly in tourism-related activities during public and school holidays.
“Sustained capital investment and rising external demand further bolstered economic expansion, despite headwinds from uncertain trade policies,” he said.
Mohd Uzir highlighted that the reduction of the Overnight Policy Rate by 25 basis points to 2.75 per cent and the disbursement of a one-off RM100 cash assistance to eligible Malaysians under the Sumbangan Asas Rahmah initiative played a supportive role in stimulating domestic consumption, thereby reinforcing overall economic activity during the quarter.
He noted that the manufacturing output increased by 2.8 per cent in August, largely supported by gains in export-oriented industries, while the mining sector saw a robust 16.8 per cent rise in August, driven by higher production of crude oil and condensate and natural gas.
“Furthermore, sales in the wholesale and retail trade sector rose by 5.0 per cent in July and 4.9 per cent in August.
“The wholesale trade sub-sector rose 5.1 per cent in August, followed by a 5.0 per cent increase in retail trade,” said Mohd Uzir.
Meanwhile, Malaysia’s trade performance fluctuated over the past two months, with exports posting solid growth in July at 6.5 per cent, but momentum eased to 1.7 per cent in August, while imports dipped by 5.9 per cent in August after a modest uptick of 0.6 per cent in July.
“As a result, overall trade activity expanded by 3.6 per cent in July but declined by 2.0 per cent in August,” he said.
According to DOSM, all sectors posted positive growth, with a turnaround in the mining and quarrying sector, while the services and manufacturing sectors remained the anchors of expansion in this quarter.
The services sector grew by 5.1 per cent in the third quarter of 2025, bolstered by the wholesale and retail trade, transportation and storage and food and beverages and accommodation sub-sectors.
Furthermore, the manufacturing sector expanded by 4.0 per cent (2Q 2025: 3.7 per cent), mainly supported by electrical, electronic and optical products as well as vegetable and animal oils and fats and food processing.
Mohd Uzir said the mining and quarrying sector soared to 10.9 per cent from a decrease of 5.2 per cent in the previous quarter, mainly spearheaded by higher production of natural gas and crude oil and condensate.
“Meanwhile, the construction sector continued its growth of 11.2 per cent, from 12.1 per cent following a strong performance in all segments, mainly civil engineering and specialised construction activities.
“Additionally, the agriculture sector registered marginal growth of 0.4 per cent (2Q 2025: 2.1 per cent), influenced by better performance in the livestock sub-sector; however, oil palm and rubber output contracted in this quarter,” he said. — Bernama
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