Supported by resilient domestic demand and a 17.7% jump in net exports, Malaysia’s economy expanded 5.2% year-on-year in Q3 2025 according to Bank Negara. This is its fastest pace in a year. Likewise, quarter-on-quarter growth reached 2.4%, lifting year-to-date GDP growth to 4.7%, near the upper end of Bank Negara Malaysia’s 2025 forecast range of 4.0–4.8%. Following the Q3 data, several banks upgraded their 2025 growth projections and highlighted Malaysia as a frontrunner in ASEAN, with some banks now expecting Malaysia to be the region’s second-fastest-growing economy after Vietnam.
This growth momentum is underpinned by a strong investment pipeline. From January to September 2025, Malaysia recorded RM285.2 billion in approved investments (68.36 billion U.S. dollars, a 13.2% year-on-year increase across 4,874 projects in manufacturing, services and primary sectors. Foreign investments accounted for more than half of the total and surged 47.5% year-on-year, with the approvals expected to create about 152,766 new jobs nationwide. Johor emerged as the largest recipient of investment, reflecting the growing role of the Johor–Singapore corridor and Malaysia’s broader strategy to position itself as a regional manufacturing, logistics and services hub.
This combination bodes well for investors. Authorities have highlighted strong inflows into high-value sectors such as electronics, digital infrastructure, green technology, and advanced manufacturing. Likewise, semiconductor investments and critical mineral down streaming supported by global commercial players underscore Malaysia’s role in regional supply chains.
