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Malaysia's economy grows 5.2% year on year in 2025

Bank Negara Malaysia (BNM) said in a statement that for the fourth quarter of 2025, Malaysia's economy advanced by 6.3%, driven mainly by domestic demand.

Kuala Lumpur (VNA) – Malaysia’s economy grew 5.2% year on year in 2025 with strong domestic demand and favourable exports, exceeding the official forecast of 4-4.8%, its central bank said on February 13.

Bank Negara Malaysia (BNM) said in a statement that for the fourth quarter of 2025, Malaysia's economy advanced by 6.3%, driven mainly by domestic demand.

According to the bank, growth in household spending was higher, driven by positive labour market conditions and income-related policy support, while investment growth was strong, underpinned by improved machinery and equipment spending.

In the external sector, exports continued to strengthen, led mainly by stronger exports of electrical and electronics (E&E) goods.

BNM Governor Abdul Rasheed Ghaffour said the growth momentum is expected to continue in 2026, supported by resilient domestic demand and exports.

On the domestic front, he said household spending will benefit from continued support from employment and wage growth, as well as government policy measures.

Investment activity will be driven by the further progress of multi-year projects in both the private and public sectors, with continued realisation of approved investments and implementation of catalytic initiatives under national development plans, he noted.

On the external front, he added export growth will be underpinned by steady global demand, particularly for E&E goods.

Growth will also be supported by increased tourism activities following the launch of Visit Malaysia Year 2026, he added./.

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