Home Economic Indicators Malaysia’s Economy Grows 5.3% in Q1 — But Momentum Is Fading

Malaysia’s Economy Grows 5.3% in Q1 — But Momentum Is Fading

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Malaysia Economy Expands 5.3% in First Quarter

Malaysia’s economy grew by 5.3% in the first quarter compared to the same period a year earlier, according to official advance estimates released on Friday. The latest figures indicate a slowdown from the stronger growth recorded at the end of 2025.

Growth Moderates After Strong 2025 Performance

In the fourth quarter of 2025, Malaysia’s gross domestic product (GDP) expanded by 6.3%, marking the fastest growth rate in three years. That surge was largely driven by robust domestic demand, rising exports, and increased investment activity.

Key Sectors Continue to Support Expansion

During the January to March period, economic growth remained supported by continued expansion across key sectors, including manufacturing, services, and construction, according to Malaysia’s statistics department.

Economic Momentum Begins to Ease

Despite ongoing growth, overall economic momentum has moderated compared to the previous quarter, as activity in several major sectors showed signs of slowing.