Bank Negara Malaysia (BNM) announced that Malaysia's economy grew by 5.1% last year after completing the year with a 5% gross domestic product growth in the final quarter.
This was a significant improvement compared to the 3.6% GDP growth recorded in 2023 and the lower fourth quarter 2024 growth recorded in the previous quarter.
In a statement today, BNM said domestic consumption and strong investment activities were the main drivers of the country's growth.
Household spending remained stable due to the strong job market and government policy support.
In addition, investment activities were driven by major projects under the National Energy Transition Roadmap and the New Industrial Master Plan.
The services sector led the expansion followed by manufacturing and construction, which saw double-digit growth.
However, the central bank said the commodity sector struggled due to a decline in palm oil and crude oil production which weighed on overall GDP growth.
Inflation in the fourth quarter eased slightly to 1.8% from 1.9% in the previous quarter, with lower fuel and communication costs helping to offset rising food prices.
BNM said the ringgit would appreciate by 2.7% against the US dollar in 2024 but weaken in the final quarter due to global financial shifts.
It forecast steady growth in 2025 driven by stronger investment, household spending and exports.
