Malaysia GDP Growth Softens As Estimated

(RTTNews) - Malaysia's economic growth slowed to the weakest in a year in the first quarter, as estimated, and the economy is projected to log weaker growth this year than the official estimate due to trade tensions.

Gross domestic product advanced 4.4 percent on a yearly basis in the first quarter, slower than the revised 4.9 percent growth posted in the fourth quarter, data from the Bank Negara Malaysia revealed Friday.

The first quarter figure came in line with the advance estimate published on April 18 and also hit the lowest rate since the first quarter of 2024.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said Malaysia's economic is expected to be slightly lower than the earlier forecast of 4.5 percent - 5.5 percent in 2025.

The governor cautioned that growth will be affected by the escalation in trade tensions and the heightened policy uncertainties.

The production-side breakdown showed that the services sector remained the main impetus for the economic growth, with all other sectors recording positive growth except for the mining and quarrying sector.

Services output climbed 5.0 percent and manufacturing expanded 4.1 percent from a year ago. Farm output rose moderately by 0.6 percent. Meanwhile, mining and quarrying output declined further, down 2.7 percent.

On the expenditure-side, growth in private final consumption expenditure moderated to 5.0 percent from 5.3 percent. Meanwhile, government final consumption expenditure grew at a faster pace of 4.3 percent following a 4.0 percent rise.

Gross fixed capital formation growth eased to 9.7 percent from 11.8 percent.

Exports posted a moderated performance, which recorded an increase of 4.1 percent compared to last quarter's 8.7 percent growth. Imports growth eased to 3.1 percent from 5.9 percent.

On a quarterly basis, GDP climbed 0.7 percent, in contrast to the 0.2 percent contraction a quarter ago.