In the third quarter of 2025, Malaysia's economy recorded a year-on-year growth of 5.2%, aligning with preliminary estimates and marking an acceleration from the 4.4% growth observed in the previous quarter. This quarterly performance signifies the most robust annual growth in a year, primarily propelled by an increase in manufacturing output, which rose to 4.1% from 3.7% in Q2, and a strong recovery in the mining and quarrying sector, which rebounded significantly to 9.7% from a decline of 5.2%. However, the agriculture sector experienced a notable deceleration, with growth slashing to 0.4% from 2.5%. The construction sector's growth moderated slightly to 11.8% from 12.1%, and the services sector also saw a marginal slowing from 5.1% to 5%.
From an expenditure perspective, government spending surged to 7.1% from 6.4%, the swiftest increase since the second quarter of 2024, while net trade positively impacted the economy. Exports increased by 1.4%, though at a slower pace compared to the previous 2.6%, whereas imports rose by only 0.4%, a significant slowdown from the prior 6.6%. In contrast, private consumption growth decelerated to 5% from 5.3%, and fixed investments recorded their slowest growth in nearly two years, dropping to 7.4% from 12.1%. Quarter-on-quarter, the economy expanded by 2.4%, the most substantial quarterly growth since Q2 2022, following an upwardly revised expansion of 2.2% in the preceding quarter.
