Economic Update
Local
Malaysia Q1 2025 GDP: Moderating Growth Outlook
Mon, 19-May-2025 07:31 am
by Kenneth Leong • Apex Research

Executive Summary

  • Malaysia’s GDP expanded in Q1 2025 albeit at a moderated pace of 4.4% yoy, compared to 4.9% in the previous quarter, driven by sustained household spending, stable expansion in investment activities and solid external demand which propelled exports growth.

  • On a quarter-on-quarter (qoq) seasonally adjusted basis, Malaysia’s GDP rose 0.7% qoq in Q1 2025, recovering from -0.2% qoq in Q4 2024 on the back of improvement across all but the mining and quarrying sector.

  • We project Malaysia’s economy to expand at a more moderate rate of 4.2% yoy in 2025, a downward revision from the earlier estimate of 4.6% yoy. This adjustment reflects the anticipated impact of a baseline scenario involving a 10% reciprocal tariff, which could dampen global trade activity, disrupt supply chains, and lead to softer consumer spending and business investment.

Sentiment: Positive
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.219747 4.253423
EUR 4.911876 4.916990
CNY 0.590266 0.590912
HKD 0.537648 0.541618
SGD 3.296584 3.319916