Is Malaysia's economy growing?
Yes. GDP grew 5.4% in early 2026, and services now run the show.
Yes. Malaysia's economy grew 5.4% year-on-year in the first quarter of 2026, after 5.2% growth across the whole of 2025, faster than most advanced economies. In real terms the economy is worth about RM1.74 trillion a year. Almost 60% of it is services; manufacturing adds another quarter. Agriculture, once the backbone, is now just 6%.
Annual GDP growth, real terms (%)
Malaysia's economy has grown most years. The exception was 2020, when it shrank 5.5% in the pandemic, before snapping back 9.0% in 2022.
The economy by sector (2025, RM billion)
Services dominate, at nearly 60% of GDP. Manufacturing is the second pillar. Agriculture, mining and construction are now minor slices of a services-and-factories economy.
What it means
- The economy is still growing. Real GDP rose 5.4% year-on-year in Q1 2026, extending a solid run of 5.2% in 2025 and 5.2% in 2024, quicker than most developed economies.
- Services are the engine. At about RM1.03 trillion, services, retail, finance, tourism, transport, telecoms and government, make up nearly 60% of the economy.
- Manufacturing is the second pillar (about RM399 billion, ~23%), the same electronics and machinery that dominate Malaysia's exports.
- The Covid scar was deep. GDP shrank 5.5% in 2020, the worst contraction since the 1998 Asian financial crisis, then rebounded 9.0% in 2022 as the economy reopened.
- Malaysia has left the farm behind. Agriculture is now just ~6% of GDP. The country has shifted decisively from a commodity economy to services and manufacturing.
- Publisher
- Department of Statistics Malaysia (DOSM), via data.gov.my · Government, national statistics office, open data
- Document
- Gross Domestic Product (GDP), real terms
- Published
- 2026
- Source link
- https://data.gov.my/data-catalogue/gdp_qtr_real
- Retrieved
- 2026-07-24
- Coverage
- Real (inflation-adjusted, constant-price) GDP. Annual growth rates are year-on-year in real terms. The latest quarterly figure is Q1 2026 (5.4% year-on-year). Sector shares are real GDP by economic activity for 2025, in RM billion. Nominal (current-price) GDP is higher, at roughly RM1.9 trillion.
Frequently asked
What is Malaysia's GDP growth rate?
Malaysia's real GDP grew 5.4% year-on-year in the first quarter of 2026, following full-year growth of 5.2% in 2025 and 5.2% in 2024, according to DOSM data on data.gov.my.
How big is Malaysia's economy?
About RM1.74 trillion a year in real (inflation-adjusted) terms in 2025, per DOSM. In nominal (current-price) terms it is larger, roughly RM1.9 trillion.
What is the biggest sector of Malaysia's economy?
Services, at about RM1.03 trillion, nearly 60% of GDP. Manufacturing is second at around RM399 billion (about 23%), followed by agriculture, mining and construction.
Is Malaysia's economy doing well?
By most measures yes: growth of 5.4% in early 2026 is above the global average and faster than most advanced economies, driven by services and a strong manufacturing and export base.
How much did Malaysia's economy shrink during Covid?
Real GDP contracted 5.5% in 2020, its worst year since the 1998 Asian financial crisis, before recovering and growing 9.0% in 2022.
Where does this GDP data come from?
From the Department of Statistics Malaysia (DOSM), published as official open data on data.gov.my. Quarterly figures run to Q1 2026 and annual sector figures to 2025.
Malaysia, decoded monthly
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