Malaysia's 4.4% GDP growth in Q1 propelled by 6% spurt in March
PETALING JAYA: Malaysia's gross domestic product (GDP) grew by 4.4% in the first quarter of 2025 compared to 4.9% in the fourth quarter of 2024, according to the Department of Statistics.
Quarter-on-quarter seasonally adjusted, Q1 2025 GDP rebounded to 0.7% (Q4 2024: -0.2%). The monthly economic performance grew by 3.5% and 3.6% in January and February, respectively, before accelerating to 6% in March.
Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin said, 'This quarter's economic expansion was supported by steady performance on the supply side, notably in the services, manufacturing and construction sectors. This reflects a healthy pace of domestic production and a well-diversified industrial base despite global challenges. On the demand side, consumer and business sentiment remained positive, with spending boosted by festive celebrations, travel activities and ongoing investments, particularly in construction-related projects. The salary increment for civil servant under Sistem Saraan Perkhidmatan Awam along with the rollout of the first phase of Sumbangan Tunai Rahmah further supported the overall economic momentum.'
In terms of sectoral performance, the services sector expanded by 5% in the first quarter of 2025 (Q4 2024: 5.5%), driven by the wholesale and retail trade sub-sector at 4.3%. This growth was underpinned by increases in the wholesale (5.4%) and retail (5.2%) segments, while motor vehicles declined (-3.7%) in this quarter. Furthermore, transportation and storage and business services sub-sectors demonstrated strong growth of 9.5% and 7.7%, respectively, benefiting from continued demand in freight segments as well as professional and business support services.
On a quarter-on-quarter seasonally adjusted basis, the services sector grew by 0.7% (Q4 2024: 0.3%).
The manufacturing sector moderated to 4.1% (Q4 2024: 4.2%) in the first quarter of 2025, supported by sustained external demand for electrical and electronic products, emphasising the country's strategic role in global supply chains. Nonetheless, domestic-oriented industries softened, influenced by the transport equipment, other manufacturing and repair following lower production in motor vehicles and transport equipment. On a quarter-on-quarter seasonally adjusted basis, the manufacturing sector increased by 1.4% (Q4 2024: -1.2%).
The construction sector grew by 14.2% (Q4 2024: 20.7%), marking its fifth consecutive quarter of double-digit growth. The sector's robust performance was led by non-residential buildings, which surged by 21.4%, spurred by data centre projects particularly in Johor and industrial facilities such as factories.
This was followed by specialised construction activities (17.2%), residential buildings (16.6%) and civil engineering (5.2%). Quarter-on-quarter seasonally adjusted, this sector increased by 1.1% (Q4 2024: -0.2%).
In addition, the agriculture sector rebounded to 0.6% (Q4 2024: -0.7%), attributed to strong performance in the marine fishing sub-sector at 10.3%.
Furthermore, the other agriculture sub-sector recorded a 2.2% increase, supported by production of vegetables and fruits. Nonetheless, the oil palm sub-sector declined by -3.1% following lower yields of fresh fruit bunches. This sector rebounded to 1.1% (Q4 2024: -2.8%) quarter-on-quarter seasonally adjusted.
The mining and quarrying sector declined further in the first quarter to -2.7% (Q4 2024: -0.7%), influenced by contractions in the natural gas and crude oil and condensate sub-sectors at -2.2% and -4.6%, respectively. The downturns reflect subdued output across key upstream activities. In terms of quarter-on-quarter seasonally adjusted, this sector posted a decline of -1.9%, reversing from 4% growth recorded in the previous quarter.
Mohd Uzir said, 'Private final consumption expenditure grew by 5%, easing slightly from 5.3% in the preceding quarter. The growth was driven by spending in transport (9.1%), restaurants and hotels (13.2%), and food and non-alcoholic beverages (4.3%), reflecting heightened activity related to travel, tourism and festive seasons. On a quarter-on-quarter seasonally adjusted basis, private final consumption expenditure rose by 1.5% (Q4 2024: 0.9%).'
Gross fixed capital formation (GFCF), or investment in fixed assets, increased by 9.7% from 11.8% in the previous quarter, attributed to the continued strength in the structure component, which grew by 13.4%. The sustained performance reflects ongoing development activity in residential and non-residential construction projects across the country. Additionally, investments in machinery and equipment and other assets expanded by 5.4% and 7.2%, respectively.
From a sectoral perspective, both the public and private sectors contributed to the strong investment growth this quarter. On a quarter-on-quarter seasonally adjusted, GFCF recorded a marginal improvement of 0.8% (Q4 2024: -0.03%).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
2 days ago
- Malay Mail
Social protection programmes key to poverty reduction — Suhaiza Hanim Mohamad Zailani
JUNE 8 — Malaysia has stepped up efforts to reduce poverty in recent years through targeted social protection programmes, particularly those aimed at the B40 income category. However, the effectiveness and breadth of these programmes are called into question since growing living expenses continue to strain all income levels, including M40. The B40 in Malaysia's social protection environment Targeted assistance for the Bottom 40 per cent (B40) income group is the central tenet of Malaysia's approach to reducing poverty. Programmes like Bantuan Sara Hidup (BSH), Bantuan Prihatin Rakyat (BPR), and the more recent measures unveiled in Budget 2025 aim to help low-income households cope with the rising cost of living. These initiatives provide needy families short-term financial relief through subsidies, housing assistance, and cash help. Malaysia has stepped up efforts to reduce poverty in recent years through targeted social protection programmes, particularly those aimed at the B40 income category. However, the effectiveness and breadth of these programmes are called into question since growing living expenses continue to strain all income levels, including M40. — Bernama pic The Department of Statistics Malaysia (DOSM) statistics, however, show that although these programmes provide short-term respite, they cannot significantly improve families' long-term economic standing. A recent report from the DOSM states that the average income of B40 has increased by only 1.5 per cent per year, which is not enough to keep up with inflation. Many people still have limited purchasing power as a result, particularly given the sharp increase in the price of food and housing. As such, Prime Minister Anwar Ibrahim has underlined the government's will to address these problems, promising to lower costs and increase accessibility to necessities to ease financial burdens. Critics contend that monetary distributions could not alleviate underlying economic inequities despite these guarantees. 'Malaysia's B40 will continue to face an uphill struggle against poverty without structural reforms in education, employment, and wage policies,' one economist noted. Global social protection models: Achievements and insights for Malaysia Various social protection regimes worldwide have successfully reduced poverty, particularly when multifaceted and sustainable approaches are used. One programme generally commended for decreasing severe poverty is Brazil's Bolsa Família, which goes beyond cash transfers by requiring families to comply with health and education standards. This strategy has broken the cycle of intergenerational poverty, which has had a profoundly positive effect. Another practical example is the Basic Livelihood Security Programme (BLSP) in South Korea, which combines financial help with housing assistance, skill development, and job support. By linking financial aid to social services and job training, the BLSP has decreased poverty rates and enhanced recipients' capacity to find steady work, encouraging long-term independence. South Korea's strategy emphasises the necessity of a comprehensive social safety net that fosters employment and skill development. Similarly, the European Union's 'Active Inclusion' approach supports beneficiaries by combining labour market reforms with social protection, offering financial assistance and work placements. Malaysian approach gaps: Going beyond financial aid Though Malaysia's B40 initiatives offer much-needed financial assistance, they don't have the same cohesive structure as nations like Brazil and South Korea. Due to the lack of a multifaceted strategy, B40 beneficiaries' ability to achieve economic independence is restricted. According to a local economist, 'Despite its usefulness, monetary aid frequently results in dependency if employment-based and educational initiatives do not accompany it.' In addition to providing help, we must empower beneficiaries. The main drawback is that Malaysia's social security system primarily uses short-term financial assistance to combat poverty rather than focusing on long-term empowerment initiatives. On the other hand, effective schemes, such as the BLSP in South Korea, strongly emphasise developing human capital, providing work opportunities and skill training to recipients as part of their social benefits. Another gap is the availability of affordable housing. Although Malaysian authorities have started projects to provide inexpensive housing, they are frequently focused in metropolitan areas where demand outpaces supply, underserving rural and peri-urban locations. Future directions for Malaysia: Establishing a comprehensive social safety system Motivated by South Korea's BLSP and Brazil's Bolsa Família, Malaysia might benefit from implementing a more all-encompassing strategy that incorporates job assistance and skill development to improve the efficacy of social security. Working with social services and career development programmes might pave the way for the B40 to become resilient and financially independent. Furthermore, prioritising accessible education and universal healthcare will guarantee that fundamental necessities are satisfied, lessening the financial burden on low-income households. These steps would align with international best practices, calling governments to establish safety nets that do more than alleviate acute misery. Finally, increasing social protection in underprivileged regions might improve living conditions for low-income people in rural and urban areas, addressing regional disparity concerns. When Malaysia prepares for Budget 2025, adding these components might turn the B40 support system into a cornerstone for long-term, sustainable poverty alleviation. In conclusion: Using holistic reform to close the gap A move towards a more integrated strategy might enhance results for the B40 and beyond as Malaysia's social protection programmes continue to develop. As demonstrated by international examples, providing routes to education, work, and self-sufficiency is necessary to reduce poverty effectively. If these all-inclusive models are emulated, all Malaysians might gain from the country's progress, which could help Malaysia close the gap in economic inequality. * The author is the Director of the Ungku Aziz Centre for Development Studies, Universiti Malaya. She may be reached at [email protected]. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
The Sun
6 days ago
- The Sun
Malaysia's production of crude oil and condensate in Q1 stable at 45.5 million barrels
PETALING JAYA: Malaysia's production of crude oil and condensate recorded a stable volume of 45.5 million barrels in the first quarter of 2025, reflecting the resilience of the upstream sector in navigating market uncertainties, the Department of Statistics Malaysia said in its report on the mining of petroleum and natural gas for the first three months of the year. Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said, 'The crude oil and condensate production recorded 45.5 million barrels in the first quarter of 2025, registering a marginal negative growth of 5.2% year-on-year (Q4'24: -7.3%; 45.7 million barrels). This was supported by an improvement in production of crude oil, which showed signs of recovery with a smaller contraction of negative 6.5% compared to negative 9.3% in the previous quarter.' Meanwhile, condensate production also recorded growth, but remained within the negative range at 2.4% compared to negative 2.5% in the previous period. However, natural gas production shrank by 2.2% year-on-year compared to 3.1% in the previous quarter with a total production of 781.9 billion cubic feet compared to 792.8 billion cubic feet in the fourth quarter of 2024. The Weighted Average Lifting Price for crude oil and condensate in Malaysia rose US$76.4 (RM324.7) per barrel in the first quarter of 2025, compared to US$76.3 per barrel in the previous quarter. This price increased in line with the prices of WTI and Brent, which recorded US$71.8 per barrel (Q4'24: US$70.7 per barrel) and US$75.8 per barrel (Q4'4: US$74.6 per barrel), respectively. Elaborating the performance of external trade, Mohd Uzir said, 'The export value of crude petroleum and condensate increased to RM6.2 billion compared to RM6 billion in the previous quarter. Thailand led the exports of crude petroleum and condensate with RM1.9 billion or 30.9% of total exports, followed by Australia 26.1% and Japan 11.4%.' Meanwhile, the export value of refined petroleum products declined to RM24.3 billion from RM26.5 billion in the previous quarter. Singapore remained the main recipient of refined petroleum product exports, totaling RM6.9 billion or 28.3%, followed by Indonesia 21.4% and Australia 15.5%. The export value of liquefied natural gas (LNG) recorded a decrease to RM15.5 billion in the first quarter of 2025 compared to RM16.7 billion in the fourth quarter of 2024, with 46% exported to the Japan, followed by South Korea 24.3% and China 20.1%. The import value of crude petroleum and condensate declined to RM13.6 billion in the first quarter of 2025, compared to RM15.1 billion recorded in the fourth quarter of 2024. Saudi Arabia remained the dominant source country for crude petroleum and condensate imports, amounted to 52.7%, followed by the United Arab Emirates (15.2%) and Sudan (6%). The import value of refined petroleum products stood at RM23.2 billion, lower than RM25.4 billion recorded in the previous quarter, with Singapore remaining the largest contributor (42.5%), followed by South Korea (11.9%) and India (8.1%). LNG imports recorded a decline to RM1.9 billion (Q4'24: RM2.2 billion), with the entire amount imported from Australia.
Malay Mail
7 days ago
- Malay Mail
Reducing our reliance on others for food — Suhaiza Hanim
JUNE 4 — Food security has become a significant concern in Malaysia, particularly concerning current global developments. Rising costs and a reliance on imports make it harder for many Malaysians, especially those in the B40 category who are already impoverished, to obtain reasonably priced, wholesome food. The ongoing global food crisis, which has been made worse by disruptions brought on by pandemics, geopolitical conflicts, and climate change, has also affected Malaysia. According to the Department of Statistics Malaysia (DOSM), more than 60 per cent of Malaysia's staple goods, including rice, wheat, and dairy products, are imported. Since food prices increased by 8.9 per cent in 2023 alone, even a little increase in worldwide prices results in a greater cost of living for people here. This strain is challenging for B40 households, who spend over one-third of their income on food. Enhancing agriculture as a community-based approach to boost food security Given this, Prime Minister Anwar Ibrahim has underlined the need for self-sufficiency as a crucial element of Malaysia's food security strategy. Though initiatives to expand domestic farming have shown potential, rapid development is hampered by structural issues such as smallholder farms' small size and high running costs. Additionally, the movement towards agritech has accelerated, with projects supporting smart irrigation, vertical agriculture, and sustainable agricultural methods. However, time and substantial financial commitment are needed for these endeavours. The farming industry in Malaysia, which now accounts for less than 10 per cent of GDP, would require significant reorganisation to facilitate a substantial rise in self-reliance. Food security has become a significant concern in Malaysia, particularly concerning current global developments. — Picture by Hari Anggara Insights from global models Similar issues have prompted aggressive actions from several countries. For instance, by integrating technology, Japan has effectively reduced its need for food imports. Japan has experienced a 15 per cent boost in agricultural productivity via robotic farming and precision agriculture techniques, dramatically reducing its reliance on imports for staple foodstuffs. The urban agriculture approach in South Korea also provides insightful information. Rooftop and communal gardens have been established in Seoul, giving city dwellers access to fresh vegetables while easing the burden on food imports. This strategy is mirrored in a pilot project in Penang that started in 2023 and has shown promise in urban areas; nevertheless, growth is required to have a quantifiable impact across the country. Meeting the B40 households' needs In this regard, the increase in food prices increases the danger of starvation and malnutrition among Malaysia's most vulnerable people, especially the B40. While community-based food banks have lessened part of this load, a more comprehensive strategy is required. Programmes such as Bantuan Sara Hidup (BSH) and MyKasih have provided short-term respite, although they are sometimes insufficient considering the food inflation rate. Experts increasingly call for subsidies primarily for necessities to help those with lower incomes. According to economist Datuk Mohd Salleh, 'financial assistance should go hand-in-hand with capacity-building programmes that empower communities to grow their food,' underscoring the significance of social protection in ensuring food security. In Malaysia's densely populated areas, expanding urban farming programmes might give low-income families additional sources of income and a sustainable way out of food reliance. Setting out on a new path Malaysia must address both short-term demands and long-term risks to increase food security. Although attempts to fix prices through subsidies could offer temporary respite, a revolutionary approach emphasising independence and creativity is necessary. Apart from that, Malaysia's food industry may greatly benefit from the resources offered by the FAO's Global Initiative on Food Security, which supports sustainable agricultural production, especially in crop diversity and sustainable water management. To sum up, Malaysia has to actively encourage local agriculture while reforming its policies to address food insecurity. By reducing its reliance on foreign markets, Malaysia should better safeguard its citizens from price shocks and ensure that food is constantly available and affordable, especially for those in the B40. * Datin Seri Prof Dr Suhaiza Hanim Datuk Mohamad Zailani is the Director of the Ungku Aziz Centre for Development Studies, Universiti Malaya. She may be reached at [email protected]. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
