FX.co ★ Malaysia Q2 GDP Growth Revised Lower to 4.4%

In the second quarter of 2025, Malaysia's economy experienced a 4.4% year-on-year growth, mirroring the expansion of the first quarter and slightly under the preliminary forecast of 4.5%. This sustained growth was largely bolstered by increased agricultural activity, which rose by 2%, up from 0.6% in the previous quarter. The agriculture boost was primarily driven by higher outputs in palm oil, various other crops, livestock, and the rubber sub-sector. Additionally, growth within the services sector accelerated to 5.3% from the previous quarter's 5%, mainly due to robust performances across all sub-sectors, notably in wholesale and retail trade, transportation and storage, and business services. However, growth in the manufacturing sector slowed to 3.8% from 4.1%, and construction growth decelerated to 11% from 14.2%. The mining and quarrying sector faced further contraction, dropping to -7.4% from -2.7%, attributed to reduced production levels of natural gas and crude oil & condensate. On a quarter-over-quarter basis, the economy grew by 2.1%, a significant increase from a 0.7% expansion in the prior period, representing the most substantial economic growth since the equivalent quarter of the previous year.