The Malaysian economy expanded by 4.4 percent in the second quarter of 2025 (2Q 2025), equivalent to 4.4 percent growth in the first half of 2025, driven by robust domestic demand as household spending was higher.

In 2Q 2024, the country’s economy expanded by 5.9 percent.

Bank Negara Malaysia said household spending was higher amid positive labour market conditions and income-related policy measures, including the upward revision of minimum wage and civil servant salaries.

Bank Negara governor Abdul Rasheed Ghaffour said the external environment remains challenging, with uncertainty surrounding the tariffs imposed by the United States continuing to linger, and the impact will take time to materialise fully.

“Nonetheless, Malaysia is facing these challenges from a position of strength. Our economy remains on a solid footing, supported by resilient domestic demand, continued demand for electrical and electronics goods, and a diversified export structure.

“These fundamentals, alongside continued structural reforms, ensure that Malaysia is well-positioned to navigate the evolving global landscape,” he said.

- Bernama

Malaysiakini wants to hear from you

Zafrul: US tariff unlikely to trigger recession, but may dampen growth

Zafrul: US tariff unlikely to trigger recession, but may dampen growth

M'sia's strategic diplomacy delivers results, US drops tariff to 19pct - Zafrul

M'sia's strategic diplomacy delivers results, US drops tariff to 19pct - Zafrul

Rate cut to spur moderate demand in property sector, say analysts

Rate cut to spur moderate demand in property sector, say analysts

Brisk ringgit transactions ensure currency maintains high global standing

Brisk ringgit transactions ensure currency maintains high global standing