skyline at night in Malaysia

Malaysia GDP

Malaysia GDP

Economic Growth in Malaysia

Malaysia's economy recorded an average growth rate of 4.2% in the decade to 2024, compared to the 4.9% average for ASEAN. In 2024, real GDP growth was 5.1%. For more GDP information, visit our dedicated page.

Malaysia GDP Chart

Note: This chart displays Economic Growth (GDP, annual variation in %) for Malaysia from 2019 to 2018.
Source: Macrobond.

Malaysia GDP Data

2020 2021 2022 2023 2024
Economic Growth (GDP, ann. var. %) -5.5 3.3 9.0 3.5 5.1
GDP (USD bn) 338 374 408 400 422
GDP (MYR bn) 1,418 1,549 1,795 1,824 1,932
Economic Growth (Nominal GDP, ann. var. %) -6.2 9.2 15.9 1.6 5.9

Economy edges up more than expected in the second quarter

Economic activity surprises markets to the upside: According to a preliminary reading, GDP growth edged up to 4.5% year on year in the second quarter, from 4.4% in the first quarter. The reading was better than markets had expected; a moderation in growth from the prior quarter had been forecasted.

Agriculture and services fuel momentum in Q2: Advance estimates showed that the agricultural sector grew 2.0% annually in the second quarter, picking up from the first quarter's 0.6% increase. Moreover, services growth improved to 5.3% in Q2 (Q1: +5.0% yoy). On the flipside, the industrial sector lost steam, growing 2.7% in Q2 (Q1: +4.0% yoy). Construction growth also fell to 11.0% in Q2, marking the softest reading since Q4 2023 (Q1: +14.2% yoy).

External shocks to weigh on GDP growth: In the remainder of the year, the Malaysian economy is poised to lose steam from H1’s level, capped by global trade uncertainty. The U.S. is threatening one of the highest ASEAN tariffs on Malaysia’s exports, which have comprised around 70% of GDP in recent years. Domestic demand will likely also feel the pinch of fiscal consolidation and elevated interest rates, with the Central Bank’s monetary policy easing cycle expected to trickle down in the economy later in the year. The outlook hinges on trade negotiations with the U.S.: Malaysian exports would be subject to a 25% tariff from 1 August unless a deal is reached. That said, even with a tariff deal in place, Malaysia would remain exposed to external sector shocks, with many of its key trading partners also facing the threat of higher tariffs.

Panelist insight: United Overseas Bank’s Julia Goh and Loke Siew Ting said: “Despite a stronger advance GDP growth for 2Q25 and a preliminary average growth of 4.4% for 1H25, we keep our cautious view for 2H25 given persistent tariff risks, geopolitical tensions and the implementation of domestic fiscal reform agenda. Furthermore, this 2Q25 advance GDP data has yet to fully factor in an expected further economic weakness in June, while the impact of domestic policy changes that took effect from 1 July on consumption and investments will only start to be reflected in 3Q25 data.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Malaysian GDP projections for the next ten years from a panel of 36 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Malaysian GDP.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Malaysian GDP projections.

Want to get access to the full dataset of Malaysian GDP forecasts? Send an email to info@focus-economics.com.

Latest Global GDP News

Free sample report

Interested in economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Email Team Member Linkedin Team Member Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Fullscreen Line Chart Globe Download Share