Anwar, who is also finance minister, said with resilient domestic demand, a stable labour market, and continued investments in high-growth high-value sectors, the country is building a solid foundation for sustained economic momentum through the rest of the year.
“Malaysia’s economy expanded in 3Q 2025 by 5.2% versus 4.4% in the second quarter of 2025 (2Q 2025), driven by robust performance across all sectors.
“Resilient domestic demand continued to anchor growth despite lingering external headwinds and global uncertainties,” he said in a statement today.
Anwar said domestic demand remained the key driver of growth, registering 5.8%, underpinned by strong household spending, supported by favourable labour market conditions as well as contained inflation.
“At the same time, the government’s continuous efforts to increase the rakyat’s level of income, supported by social assistance programmes such as the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) also contributed to consumer spending,” he added.
Malaysia’s economic growth was also sustained by improvement in exports, partly reflecting the effects of front-loading activities.
For the first nine months of 2025, the economy expanded by 4.7%, underscoring the country’s resilience and strong fundamentals in withstanding global challenges.
Anwar said the 3Q 2025 performance was in line with improving economic indicators, including the labour market with total employment growing by 3.1% to 17 million persons, while the unemployment rate maintained at 3%, the same level recorded in 2Q 2025.
Additionally, he said the 3Q growth was also in line with stable inflation, which remained at 1.3%.
The manufacturing sector sales value rose by 3.5% to RM500.1 billion, industrial production index increased by 4.9%, and total trade expanded by 3.7% to RM769.8 billion, with a trade surplus of RM50.3 billion.
“Also, the current account of the balance of payments recorded a surplus of RM12.2 billion, equivalent to 2.5% of gross national income, highlighting the resilience of the goods and services accounts. The services account recorded a surplus of RM0.7 billion, after 14 years of deficits.
“Foreign direct investment continued to record a net inflow of RM8.5 billion, and the ringgit held steady at RM4.2070 against the US dollar, rising 0.1%, and reinforcing its position among Asia’s top-performing currencies,” he added.
Anwar said the government is committed to advancing its economy framework agenda by implementing structural and fiscal reforms to improve productivity, enhance competitiveness, as well as promote digitalisation and high-quality investments.
“The government remains steadfast in reducing the fiscal deficit to 3.8% in 2025 and 3.5% in 2026.
”Moving forward, the 13th Malaysia Plan, complemented by the 2026 budget, will propel economic trajectory and further support efforts to safeguard the well-being of the rakyat and ensure the benefits of growth are broadly shared,” he said.