World

Malaysia predicted to be ASEAN’s second-fastest-growing economy

Malaysia's stronger-than-expected performance over the first nine months has laid a firm foundation for the years ahead, giving policymakers and investors greater visibility for the remainder of 2025 and into 2026, analysts said.

Kuala Lumpur (VNA) – Malaysia is poised to become the second-fastest-growing economy in the Association of Southeast Asian Nations (ASEAN) after Vietnam, data showed.

Malaysia’s stronger-than-expected performance over the first nine months has laid a firm foundation for the years ahead, giving policymakers and investors greater visibility for the remainder of 2025 and into 2026, analysts said.

HSBC Global Investment Research (HSBC Research) is the latest to turn more optimistic, raising its 2025 gross domestic product (GDP) forecast to 5% from the previous estimate of 4.2%.

Malaysia’s growth outlook is being bolstered not only by domestic resilience but also by the government’s adoption of a flexible diplomatic strategy. Its proactive diplomacy, particularly at the 47th ASEAN Summit, reflects an ability to maintain neutrality while engaging major trading partners, helping to reduce external uncertainties.

HSBC noted that, alongside Indonesia, Malaysia is likely to be the second-fastest-growing economy in ASEAN, behind Vietnam.

Maybank Investment Bank Bhd (Maybank IB) echoed the brighter outlook, revising its 2025 GDP forecast to 4.7% from 4.2% and lifting its 2026 projection to 4.5% from 4.1%. Resilient domestic demand remains the anchor of Malaysia’s growth narrative, even as net external demand continues to fluctuate, it said.

Standard Chartered Global Research also upgraded its 2025 GDP estimate to 4.7% from 4.2%, following Malaysia’s solid nine-month expansion of 4.7% this year. However, it trimmed its 2026 outlook from 5% to 4.5%, citing a likely slowdown in external demand compared with this year.

Malaysia’s central bank is expected to keep its overnight policy rate (OPR) unchanged at 2.75%. As a result, consumption and investment activity are expected to continue supporting economic growth in the coming quarters.

CIMB Securities Sdn Bhd raised its 2025 forecast to 4.5% from 4.3%, while growth is projected to ease to 4.1% in 2026. However, with Malaysia’s major trading partners expected to expand at a slower pace, external demand is likely to soften in 2026./.

VNA
#Malaysia #second-fastest-growing economy #ASEAN #Malaysia’s growth #HSBC Malaysia
Follow VietnamPlus

Related News

Malaysian Deputy Investment, Trade and Industry Minister Liew Chin Tong (second left) takes part in an opening gimmick for Asean Miti Day at the ministry in Kuala Lumpur (Photo: malaymail.com)

Malaysia launches region’s first EV battery passport

Malaysia has launched the region’s first electric vehicle battery passport standard, a move the government says will help accelerate the growth of the country’s EV ecosystem amid rapid technological changes.

See more

Air passengers at the departure terminal of the Phnom Penh International Airport. (Photo: khmertimeskh.com)

Air travel between Cambodia, Thailand remains operational

In a statement released on his Facebook post, Hun Sen explained that his earlier message, advising the Royal Government to consider suspending cross-border travel, referred specifically to land routes, as tensions are escalating along the entire land border, with some spillover into maritime areas.

Thailand, Myanmar boost anti-drug cooperation

Thailand, Myanmar boost anti-drug cooperation

Myanmar authorities have handed over three drug-related fugitives wanted by Thailand and one Thai national who was residing illegally in Myanmar to Thai authorities, according to the Myanmar Police Force.

An aerial drone photo shows a bridge damaged by floods in Bener Meriah regency, Aceh, Indonesia, (Photo: Xinhua)

Indonesia: Over 200 people remain missing after floods, landslides

The floods and landslides that struck three provinces on Indonesia's Sumatra Island have caused damage to about 1,200 public facilities, as well as 219 health facilities, 581 educational establishments, 434 places for worship, 290 office buildings and 145 bridges.

Director General of Customs and Excise Djaka Budhi Utama (Photo: cncbindonesia.com)

Indonesia’s customs warns of emerging smuggling “hotspot”

To prevent similar smuggling activities, Indonesia’s Directorate General of Customs and Excise is conducting strict surveillance along the coast. The areas under surveillance include Belawan, Tanjung Balai Asahan, Dumai, Jambi, and the Riau Islands.

Prime Minister of Timor-Leste Kay Rala Xanana Gusmão on December 11 delivers a policy speech at the ASEAN Headquarters/ASEAN Secretariat. (Photo: VNA)

Timor Leste PM: Admission into ASEAN – a dream comes true

Prime Minister of Timor-Leste Kay Rala Xanana Gusmão emphasised that becoming a member of ASEAN is “a dream comes true" for the people of Timor Leste, affirming that joining ASEAN marked a significant turning point, helping Timor Leste move towards the future and integrate into the broader regional community.

Tourists visit Bangkok, Thailand. (Photo: Xinhua/VNA)

Foreign arrivals to Thailand down nearly 10% year-on-year

For 2026, Thailand expects 34.9 million foreign visitors, a 4% increase, earning 1.63 trillion THB in revenue, up 8% year-on-year. Total tourism revenue, including domestic travel, is forecast at 2.79 trillion THB (88 billion USD).

Thai Prime Minister Anutin Charnvirakul speaks before the Parliament in Bangkok on September 29 (Photo: XINHUA/VNA)

Thai PM dissolves parliament

Thai Prime Minister Anutin Charnvirakul on December 12 signed a decree dissolving the House of Representatives, paving the way for a new general election.

Housing and Local Government Minister Nga Kor Ming (Photo: Bernama)

Malaysia takes drastic measures to prevent illegal dumping

As of October, a total of 3,634 illegal dumping sites in Johor, Melaka, Negeri Sembilan, Pahang, Perlis, Kedah, and areas under Kuala Lumpur and Putrajaya had been shut down - the highest number recorded since the Solid Waste and Public Cleansing Management Act 2007 (Act 672) took effect.

The joint military training exercise, Exercise Cooperation, is in its seventh iteration, and will centre on urban counter-terrorism operations. (Photo: Singapore's Ministry of Defence)

Singapore, China strengthen defence cooperation

Exercise Cooperation, a joint exercise between Singapore and China, is taking place from December 10 to 17, featuring a battalion-level field training exercise at Safti City for the first time.

Illustrative image (Photo: Getty Images)

Singapore sees alarming rise in domestic violence cases

Domestic violence in Singapore continued to rise in 2024, mainly due to increased child abuse and spousal violence, according to the Domestic Violence Trends Report released by the Ministry of Social and Family Development on December 10.

Indonesia speeds up reconstruction after severe floods, landslides

Indonesia speeds up reconstruction after severe floods, landslides

Indonesian President Prabowo Subianto has approved a relief package worth 60 million IDR (about 3,600 USD) for each damaged home. Coordinated efforts are underway to provide financial aid, rebuild infrastructure, and restore livelihoods, particularly for 25,000 ha of farmland in West Sumatra.