ECONOMY / KEY INFRASTRUCTURE UPDATES​

• Malaysia’s economy grew by 5.2% in 3Q 2025, driven by sustained household spending, steady investment activities, and growth in external demand (3Q 2024: 5.4%). This brought the growth in the first 9 months of the year (9M 2025) to 4.7%.  
• Full-year Gross Domestic Product (GDP) growth is expected to range between 4.0%–4.8%.
• The headline inflation rate for 3Q 2025 has eased to 1.3% (3Q 2024: 1.9%), mainly due to stabilising prices in the Housing, Water, Electricity, Gas & Other Fuels, Transport & Health sectors. This brought the headline inflation rate for the first 9 months to 1.4%.
• Full-year headline inflation is expected to remain moderate, ranging between 1.5% and 2.3%.
• The labour market continues to improve in 3Q 2025, with the unemployment rate dropping to 3.0% (3Q 2024: 3.2%), the lowest post-pandemic level.
• The Overnight Policy Rate (OPR) and base rate have been reduced by 25 basis points to 2.75% and 3.46%, respectively, as a pre-emptive measure to preserve Malaysia’s steady growth path.
• Global trade volatility and geopolitical uncertainties continue to pose downside risks.
• Budget 2026 measures, along with the new Malaysia–US Comprehensive Strategic Partnership, are expected to boost investor confidence, support external demand, and sustain growth into 2026.