Malaysia’s economy expanded by 4.4% in the first quarter of 2025 compared to the same period a year earlier, with exports to the United States jumping in March, according to data released on Friday. However, authorities cautioned that the ongoing U.S. tariffs were creating significant uncertainty.
The official preliminary GDP estimates showed a slowdown from the 5% growth recorded in the final quarter of 2024. The statistics department highlighted that domestic activity and demand were key drivers of growth. Final data for the first quarter will be released on May 16.
“Malaysia’s GDP growth remained resilient amidst persistent global headwinds, supported by solid domestic fundamentals,” said Chief Statistician Mohd Uzir Mahidin.
He noted that strength in retail and wholesale trade, a strong jobs market, and increased demand for key exports helped shield the economy from global challenges.
In separate data, March exports saw a stronger-than-expected 6.8% annual growth, with shipments to the United States surging 50.8% to a record 22.66 billion ringgit ($5.14 billion).
In early April, U.S. President Donald Trump announced a global round of import tariffs, most of which have been delayed until July. Malaysia, facing a 24% tariff rate, will send a delegation next week for talks with U.S. officials.
Despite the global trade tensions, the Ministry of Trade stated that the central bank had maintained its GDP growth forecast for the year at 4.5% to 5.5%, with export growth projected at 5.2%.
“However, caution is needed moving forward due to uncertainties in global demand, which may impact growth in investments and domestic demand,” the ministry said.
“As a small, open trading nation, Malaysia is inevitably exposed to increased external uncertainties in the global trade environment.”
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