Malaysia’s economy expanded 5.2% in 2025, surpassing both the government’s 4.0%–4.8% projection and the preliminary 4.9% estimate. Bank Negara Malaysia said growth was underpinned by strong domestic demand and favorable exports. Household spending rose on the back of positive labor market conditions, income-related policy support, and robust consumption. Investment also expanded, supported by machinery and equipment spending, ongoing multi-year projects, and the development of data centers. Exports continued to rise amid steady global demand for E&E goods, while imports remained strong, reflecting investment and intermediate goods. On production, manufacturing growth was led by the electrical and electronics sub-sector and consumer goods, while services benefited from consumer-oriented sub-sectors, government services, ICT, and inbound tourism. Agriculture strengthened on higher palm oil output and milder floods.