Strong Growth for Malaysia’s Economy Since 2024 Is a Good Thing
A positive end for Malaysia’s economy last year, as it ended on a high note, thanks to the manufacturing and services sectors. These sectors helped drive the trends that enabled Malaysia to reach its target.
Big Targets, Big Accomplishments
The manufacturing sector’s sales reached RM1.9 trillion, a 4.6% increase from 2023, led by food, beverage, and tobacco. Electrical and electronic products also contributed, with an 8.7% growth. The services sector performed well, with revenue hitting RM2.4 trillion, a 6.3% rise, largely due to a recovery in tourism and increased spending in retail, food, and accommodation.
On the other hand, inflation remained moderate at 1.7% in December 2024, slightly lower than November’s 1.8%. Modest price increases were recorded in self-care, recreation, health, and household maintenance. The producer price index (PPI) rose by 0.5%, mainly due to higher costs in agriculture (23.8%), electricity and gas supply (0.9%), and water supply (6.7%).
Malaysia’s total trade increased by 14.6% to RM257.9 billion. The labour market remains strong, with employment growing by 77,400 people in Q4 2024 to 16.79 million. The unemployment rate remained steady at 3.1%.
Positive Outlook Ahead for Malaysia’s Economy in 2025
Malaysia’s Leading Index signalled positive momentum, rising 3.1% year over year. Although the long-term trend remains below 100 points, robust domestic demand, wage growth, and a resilient labour market are expected to sustain Malaysia’s economy in 2025, and we can all look forward to that.
