Malaysia ended 2025 with strong economic momentum, as fourth-quarter GDP growth was revised up to 6.3% year-on-year (YoY) from an earlier estimate of 5.7%, according to **UBS Global Banking. The upward revision was mainly driven by the services sector, which expanded 6.3% YoY, along with improvements in mining and agriculture. On a quarter-on-quarter basis, the economy grew 0.6%, while manufacturing accelerated, supported by the electronics and electrical equipment (E&E) sector. Construction remained the fastest-growing sector with 11.9% YoY growth, and exports of both E&E and non-E&E products—such as palm oil and liquefied natural gas (LNG)—remained resilient.
Despite the strong performance, Malaysia’s economic growth in 2026 is projected to remain at 4.8%, with headline inflation expected to stay low at around 1.6%. The country’s performance reflects broader positive trends in Association of Southeast Asian Nations, which is increasingly seen as a strategic investment destination. During the 14th OneASEAN Summit hosted by UBS, analysts projected that the ASEAN-6 economies could grow by around 4.9% in 2026, supported by strong global trade connections and large domestic markets. Growth is expected to be driven by household consumption in Indonesia, rising private investment in Thailand and the Philippines, and resilient technology-related exports in Singapore and Malaysia.
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March 24, 2026
