Stock Markets April 17, 2026 12:58 AM

Malaysia Q1 GDP Rises 5.3% Year-on-Year, Pace Eases from Prior Quarter

Manufacturing, services and construction sustain growth while mining output contracts

By Derek Hwang
Malaysia Q1 GDP Rises 5.3% Year-on-Year, Pace Eases from Prior Quarter

Malaysia’s economy expanded 5.3% in the first quarter on a year-earlier basis, according to official advance estimates, marking a moderation from the 6.3% growth recorded in the previous quarter. Growth was supported by continued strength in manufacturing, services and construction, but mining and quarrying output fell amid lower crude oil and natural gas production.

Key Points

  • Malaysia's GDP rose 5.3% year-on-year in Q1, down from a 6.3% expansion in Q4 2025.
  • Manufacturing, services and construction sustained growth, but mining and quarrying contracted by 1.1% due to lower crude oil and natural gas production.
  • For the full year 2025, the economy expanded 5.2%, supported by record trade values and approved investments.

Official advance figures released on Friday show Malaysia’s gross domestic product grew 5.3% in the first quarter compared with the same period a year earlier. The pace represents a slowdown from the previous quarter when the economy expanded at a 6.3% annualized rate.

The statistics authority attributed the January-March increase to continued expansion in three principal sectors: manufacturing, services and construction. While these sectors sustained the overall rise in economic activity, the report noted that momentum eased relative to the final quarter of 2025.

In the fourth quarter of 2025, GDP had accelerated by 6.3% - a pace described in the official release as the fastest in three years - with that advance driven by stronger domestic demand, as well as higher exports and investments.


By contrast, the mining and quarrying sector registered a decline of 1.1% during the first quarter. The statistics department linked that contraction to lower production levels, in particular for crude oil and natural gas.

For the full year 2025, Malaysia’s economy expanded 5.2%, surpassing expectations. The annual figure reflected record values of trade and a higher level of approved investments, according to the same official summary.

The advance release provides an early read on economic performance for the opening quarter and highlights a mixed profile: persistent strength in manufacturing, services and construction alongside weakness in mining output. The numbers underscore the role of domestic demand, external sales and investment activity in supporting growth through the end of 2025, while also pointing to sectoral differences that influenced the start of 2026.

The statistics office presented these estimates as preliminary figures for the January-March period, offering a snapshot of activity across key components of the economy.

Risks

  • Slower momentum compared with the prior quarter could signal weaker near-term growth prospects for sectors dependent on overall economic demand - notably manufacturing and services.
  • Declines in mining and quarrying output, driven by lower crude oil and natural gas production, pose downside risk to the energy and commodity-related segments of the economy.

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