Malaysia's GDP Growth Slows to 4.4% in Q1 2025

Malaysia's economy grew by 4.4% year-on-year in the first quarter of 2025, slowing from 5% in the previous quarter, according to advance estimates from the Department of Statistics Malaysia. This deceleration was attributed to moderated growth in the services, manufacturing, and construction sectors, while mining and quarrying experienced a steeper decline and agriculture rebounded modestly. Despite the slowdown, strong domestic demand, festive season spending, and a favorable labor market helped cushion the economy against global headwinds. The services sector remained the main growth driver, supported by wholesale and retail trade, transportation, and information and communication, while manufacturing growth was led by export-oriented industries. Analysts note that Malaysia’s domestic resilience offers a buffer against international pressures, but warn that ongoing global trade tensions could prompt downward revisions to the country's growth outlook for 2025. The comprehensive first-quarter GDP analysis is scheduled for release on May 16.