MALAYSIA’S ECONOMY IS STEADILY RECOVERING

Malaysia’s economic recovery persisted in Q1/2025, with GDP expanding by 4.4% compared to the same quarter in the previous year (Q1/2024: 4.2%). The continued strong growth in investment activity, underpinned by confidence in the Unity Government’s Madani Economic policies, was a key driver of this performance. The positive performance of the Malaysian economy can be associated with a steady recovery in exports and household spending, which is bolstered by ongoing growth in employment and wages. Malaysia’s position as a strategic investment destination has led to significant expansion in investment.

As reported by MIDA, total approved investments in 2024 increased by 14.9% yearon- year to RM378.50 billion, compared to RM329.46 billion in 2023. Domestic investment constituted the predominant share of total capital investment, contributing 55% to the overall figure. In 2024, domestic investment attained a value of RM208. 1 billion, signifying a substantial 47.5% increase relative to 2023 (RM141.1 billion, 2023). In contrast, foreign investment registered a decline of 9.5% in 2024, reaching RM170.4 billion compared to RM188.4 billion in 2023. The top five states that took the lion’s share of investments, amounting to 84.3% of the total approved investments, are Selangor (RM101.1 billion), Wilayah Persekutuan Kuala Lumpur (RM91.5 billion), Johor (RM48.5 billion), Kedah (RM45.8 billion) and Pulau Pinang (RM32.0 billion).