Malaysia’s economy on solid recovery path

Amid global economic challenges, Malaysia's economy maintained robust recovery throughout 2024, providing momentum for continued growth in 2025.

According to the Department of Statistics Malaysia (DOSM), the country's GDP grew by 5.1% in 2024, reaching MYR1.647 trillion ($411 billion), up from the 3.6% growth and MYR 1.568 trillion in 2023.

In the fourth quarter of 2024, the GDP expansion stood at 4.8% to reach MYR429.8 billion, compared to the 2.9% growth and MYR 419.2 billion in Q4/2023. This performance was driven by services (up 5.3%), manufacturing (4.2%), and construction (17.2%).

The services sector experienced growth across all sub-sectors, particularly wholesale and retail, transportation and storage, and information and communications.

Manufacturing gains stemmed from electrical-electronics-optical products, oil and gas, chemical, rubber-plastics, oil-grease, and processed food.

Construction growth was fuelled by both residential and non-residential projects. However, agriculture and stone mining posted modest growth at 3.5% and 0.8%, respectively.

Malaysia’s foreign trade hit a record MYR2.9 trillion in 2024, up 9.2% from MYR2.6 trillion in 2023.

December trade increased 14.6% year-on-year, with imports growing 11.9% to MYR119.3 billion and exports rising 16.9% to MYR138.5 billion. This resulted in a trade surplus of MYR19.2 billion, up 62.3%, marking the 56th consecutive month of surplus since May 2020.

Major trade partners of Malaysia included China (MYR46.8 billion), Singapore (MYR36.1 billion), and the U.S. (MYR30.9 billion), while ASEAN countries accounted for 26% of its total trade.

Mohd Uzir Mahidin, a senior statistician at the DOSM, attributed growth to robust domestic demand, the external sector's recovery, and foreign investments in renewable energy and digital infrastructure, including data centres.

He added that higher tourism numbers and civil servant wage hikes are expected to boost household spending and retail.

Chief economist Shan Saeed of Juwai IQI praised Malaysia’s resilience amid global headwinds, predicting steady growth in 2025. The country's agreements with global companies and strong infrastructure and technology investments are seen as drivers for GDP growth.

Malaysia’s government is focusing on international trade and strategic initiatives such as the 12th Malaysia Plan (12MP), the National Trade Blueprint (NTBP), and the New Industrial Master Plan 2030 (NIMP 2030) to ensure long-term growth.