Malaysia’s GDP growth accelerates to 5.8% in Q2 2025
Malaysia’s gross domestic product grew 5.8% in the second quarter of 2025, up from 5.4% in the first three months of the year, Finance Minister II Datuk Seri Amir Hamzah Azizan told reporters at the GEAR-uP Progress…
Source: Portal Rasmi Kementerian Kewangan · August 12, 2026 at 9:43 PM · AI-assisted report
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PUTRAJAYA, 13 AUGUST 2026 —
Malaysia’s gross domestic product grew 5.8% in the second quarter of 2025, up from 5.4% in the first three months of the year, Finance Minister II Datuk Seri Amir Hamzah Azizan told reporters at the GEAR-uP Progress Report press conference in Putrajaya today.
Market Impact
He said growth averaged 5.2% in both 2023 and 2024, while the first quarter of 2025 already printed 5.4%. The Ministry of Finance’s advance estimate for the second quarter implies full-year expansion of 5.6%, he added.
“If we look at it overall, the Malaysian economy is strong. In 2024, 5.2 per cent GDP growth. In 2025, 5.2 per cent. This year, the first quarter was 5.4 per cent and the advance estimate we have for the second quarter is 5.8 per cent. This means that this year we have reached 5.6 per cent,” Amir Hamzah said.
The resilience comes despite global trade frictions and geopolitical risks in West Asia, he noted. Trade data for June showed a surplus of RM13.2 billion, underscoring exports’ buffer role.
Amir Hamzah attributed the outperformance to the MADANI Economy Framework, which he said is gaining traction through initiatives that lift domestic demand and household income. The GEAR-uP programme, launched by the Ministry of Finance in 2024, channels RM120 billion in domestic direct investment from 2024 to 2028 to underpin long-term growth.
Government-linked investment companies and government-linked companies are acting as catalysts by attracting capital, technology and skilled workers to Malaysian industries, he said.
“They help industries in the country to get talents, talents that can be used better, as well as attract others to come to Malaysia with funds, with know-how to help the country develop,” Amir Hamzah told the briefing.
The minister stressed the need to translate incoming funds into tangible benefits for Malaysians rather than short-term capital inflows.
“The important thing is that when the funds are used, the people get the benefits that are presented, Malaysia can develop into a more developed country in the future,” he said.
The second-quarter print exceeds Bank Negara Malaysia’s May forecast of 5.2% for 2025, suggesting a stronger-than-expected momentum across the economy.
Amir Hamzah said the government remains confident of hitting long-term development targets provided all stakeholders continue to support the MADANI Economy agenda.
“I am happy with what I have seen. We are on the right track and insya-Allah the country will become more mature in the future,” he said.
Related: Ministry of Finance · Amir Hamzah · Putrajaya