FX.co ★ Malaysia's Economy Expands 4.5% in Q2

In the second quarter of 2025, Malaysia's economy witnessed a year-on-year expansion of 4.5%, a slight increase from the 4.4% growth recorded in the preceding quarter, according to preliminary estimates. This growth was primarily propelled by a more robust agricultural sector, which saw a 2% increase compared to a 0.6% rise in the first quarter, fueled by higher yields in palm oil, various other agricultural products, livestock, and rubber industries. The services sector also experienced an accelerated growth of 5.3%, up from 5%, driven by solid performances across all sub-sectors, notably in wholesale and retail trade, transportation and storage, and business services, which were the key contributors. Conversely, the manufacturing and construction sectors saw a moderation in growth, with the former increasing by 3.8% compared to 4.1% and the latter by 11% against a previous 14.2%. Additionally, the mining and quarrying sector continued to decline, with output contracting by 7.4% from a previous decrease of 2.7%, attributed to reduced production of natural gas and crude oil & condensate. On a quarterly basis, the economy shrank by 1%, following a 3.5% contraction in the previous period.