Malaysia Q2 GDP Growth Revised Lower to 4.4%

Malaysia’s economy expanded by 4.4% year-on-year in Q2 2025, matching the pace in Q1 and slightly below the initial estimate of 4.5%. The sustained growth was supported by higher agricultural activity, which rose 2% compared with 0.6% in Q1, driven by increased output in palm oil, other crops, livestock, and rubber sub-sectors. Growth in services also accelerated to 5.3% from 5%, led by positive performances across all sub-sectors, with wholesale and retail trade, transportation and storage, and business services contributing the most. Meanwhile, growth moderated in manufacturing (3.8% vs 4.1%) and construction (11% vs 14.2%), while mining and quarrying output contracted further (-7.4% vs -2.7%) due to lower production of natural gas and crude oil & condensate. On a quarterly basis, the economy expanded by 2.1%, accelerating from a 0.7% growth in the previous period, and marking the steepest economic expansion since the same quarter last year.