Malaysia’s Economy Expands 4.5% in Q2

Malaysia’s economy expanded by 4.5% year-on-year in the second quarter of 2025, slightly up from 4.4% growth in the previous period, preliminary estimates showed. The uptick was driven by a faster rise in agricultural activity, which grew by 2% compared to a 0.6% rise in Q1, supported by higher output in palm oil, other agriculture and livestock, and rubber sub-sectors. Growth in services also accelerated to 5.3% from 5%, underpinned by positive performance across all sub-sectors, with wholesale & retail trade, transportation & storage, and business services being the main contributors. On the other hand, 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 in natural gas and crude oil & condensate. On a quarterly basis, the economy contracted by 1%, following a 3.5% decline in the prior period.