KUALA LUMPUR - Malaysia’s impressive economic performance in 2025 is expected to continue driving the country’s economic momentum this year, despite global uncertainties and geopolitical challenges.
Finance Minister II Datuk Seri Amir Hamzah Azizan said last year’s growth, which exceeded the government’s target, shows that the country’s economic fundamentals remain solid, supporting the growth outlook for this year.
"Alhamdulillah, we can see that Malaysia’s economy has truly rebounded. In the fourth quarter of 2025, gross domestic product (GDP) growth was 6.3 per cent, and for the whole of 2025 it was 5.2 per cent, driven by ongoing economic reforms, domestic investment and domestic spending.
"We believe these factors will continue to influence us this year. Insya-Allah, we are starting from a more stable and stronger position than before," he told a press conference after a special Cabinet meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim here today.
The meeting was held to review the country’s fiscal position and closely monitor developments in Iran following the conflict in the Middle East.
Amir Hamzah said the government had maintained an economic growth target of around 4.0 to 4.5 per cent, taking into account various external risks, including global geopolitical developments.
However, he said the government will continue to take preventive measures and seize existing opportunities to strengthen the country’s economic foundations for the long term.
"We need to continue boosting domestic investment so that economic activity at home remains vibrant and growth stability is maintained.
"As we increased allocations in Budget 2026, we expanded the number of projects to assist local traders in Malaysia and ensure the stability of their businesses,” he added.
He also said the government will press on with economic reforms to attract more foreign direct investment (FDI) to Malaysia.
"Insya-Allah, this will propel Malaysia into the future. And with stability, the country can highlight its unique strengths as it moves toward greater progress. From the perspective of foreign investment, Malaysia is seen as a peaceful, stable country with significant growth potential.
"Even though global geopolitics face various challenges, these differences create space for Malaysia to continue developing in the future," he added. - BERNAMA