Malaysia's economy expanded by 5.4% in the first quarter, slowing from 6.2% expansion in the previous quarter, according to data from the Department of Statistics Malaysia on Friday.
On a seasonally adjusted basis, the economy slipped marginally by 0.01%, against the 1.4% quarter-on-quarter growth in the fourth quarter of 2025.
On the supply side, growth was driven mainly by the services sector, which grew 5.6% in the first quarter, albeit easing from 6.2% in the prior quarter. The manufacturing sector rose 5.9%, slightly lower than 6% previously, the DoSM said.
Mining and quarrying contracted 2.1%, while agriculture grew 2.6%, slowing sharply from 5.7% in the previous quarter. The construction sector expanded 7.7% but moderated from 10.9%, led by specialised construction and non-residential buildings.
Private consumption rose 4.7%, while government spending increased 4.1%. Gross fixed capital formation grew 7.3%, supported by structures and machinery and equipment. Exports rose 5.2%, while imports increased 4.6%, though both moderated from the previous quarter.
According to a separate same-day announcement by the DoSM, Malaysia's economy grew 5.2% in 2025, maintaining the same pace as the previous year, supported mainly by the services and manufacturing sectors, which together accounted for 82.5% of GDP.
Private consumption remained the key driver on the demand side, while GDP reached 2.03 trillion ringgit at current prices and per capita income rose to 57,200 ringgit from 54,870 ringgit in 2024, the data showed.