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MALAYSIA’S economy has demonstrated remarkable resilience, with preliminary estimates indicating that Gross Domestic Product (GDP) grew by 5.7% in the fourth quarter of 2025.
This robust performance has contributed to a full-year growth rate of 4.9%, surpassing official projections of between 4.0% and 4.8%, despite a challenging global economic environment.
Minister of Economy, Akmal Nasrullah Mohd Nasir, in a statement today, noted that the surge in activity during the final quarter reflects accelerating momentum, largely driven by strengthened domestic demand alongside growth in the services and manufacturing sectors.
“These results demonstrate the effectiveness of the MADANI Economic framework in navigating global uncertainties, restructuring the economy, and sustaining robust domestic demand.
“The successful implementation of over 170 socio-economic development initiatives under the Twelfth Malaysia Plan (RMKe-12) has also contributed to this achievement,” the Minister stated.
The growth trajectory has been further supported by targeted cash assistance programmes, including the Sumbangan Asas Rahmah (SARA) and Sumbangan Tunai Rahmah (STR), which have bolstered household spending and reinforced economic activity at the grassroots level.
“This is a positive momentum that reflects a strong and competitive economic foundation for Malaysia. As we enter 2026, the first year of the Thirteenth Malaysia Plan (RMK13), the Ministry of Economy is committed to ensuring that each initiative translates into tangible benefits felt by the people,” Akmal Nasrullah added.
Government analysts remain confident that Malaysia is on the right path to achieving the aspirations of the MADANI Economic framework under RMK13, themed ‘Redefining Development,’ with the long-term objective of attaining high-income nation status by 2030.
The preliminary GDP figures also suggest that average annual growth for the RMKe-12 period, covering 2021 to 2025, stood at approximately 5.2%, exceeding earlier projections cited in the Thirteenth Malaysia Plan documents. - January 19, 2026
