Malaysia’s economy increased by 4.4 % in the first quarter of 2025 from the previous quarter, according to data released on Friday ( May 16 ). This is in line with market expectations but still in line with government estimates.
According to Reuters ‘ poll of economists, yearly gross domestic product growth was expected to increase by 4.5 % in the January to March period.
First quarter GDP increased 0.7 % compared to a 0.2 % contraction in the previous quarter on a seasonally adjusted basis.  ,  ,
In the last quarter of 2024, the business increased by a revised 4.9 %.  ,
The central banks claimed that strong family spending growth, good policy developments, regular expansion in investments, and continued export growth, contributed to the first-quarter’s economic growth.  ,
At a press conference, Bank Negara Malaysia Governor Abdul Rasheed Ghaffour stated that “lower oil and gas production and normalization in motor car sales and generation” were both factors.  ,
According to Abdul Rasheed, progress in 2025 is anticipated to be somewhat below the 4.5 to 5.5 percent estimates range, with a new estimate set to be released in the next month or two.
According to Abdul Rasheed,” the risk balance to the growth outlook is already tilted to the negative.”  ,
The central bank announced last month that the estimates for this year’s economic growth variety would need to be lowered by 4.5 to 5.5 percent as a result of the international business war.
The financial impact was reasonable for then, according to Prime Minister Anwar Ibrahim, but Malaysia was doubtful to fulfill its growth forecast this year because the majority of US tariffs were lifted until July.
If Malaysia is unable to agree to a reduction in the charge, it will start imposing a 24 % tax on its exports to the US in July.