UOB Global Economics & Markets Research highlights that Malaysia’s final Q4 2025 GDP grew 6.3% year-on-year, the fastest since Q4 2022, taking full-year 2025 growth to 5.2%, above the official range of 4.0-4.8%. The growth was driven by domestic demand, exports, tourism and artificial intelligence technologies. UOB expects real GDP to ponderous to 4.5% in 2026, with Bank Negara Malaysia maintaining the OPR at 2.75%.
A sturdy 2025 gives way to a slower 2026
“Malaysia’s final 4Q25 GDP surprised on the upside, growing 6.3% y/y (preliminary estimate: +5.7%; 3Q25: revised upwards to +5.4% from +5.2%), representing the fastest quarterly growth since 4Q22.”
“For full-year 2025, the Malaysian economy grew by 5.2%, slightly above the 5.1% growth recorded in 2024 and well above the official forecast range of 4.0-4.8% and the preliminary estimate of 4.9%.
“We expect real GDP growth to slow to 4.5% in 2026 (MoF estimates: 4.0-4.5%) amid persistent external uncertainties and base effects.”
“We anticipate that Bank Negara Malaysia (BNM) will maintain the overnight rate (OPR) at 2.75% until 2026.”
(This article was created with the lend a hand of an artificial intelligence tool and has been reviewed by an editor.)
