KUALA LUMPUR, December 23 – Malaysia is set to experience robust economic growth in 2025, with a projected GDP increase of 4.7%, according to the Mastercard Economics Institute (MEI). The growth is attributed to a strong labor market, rising investments, and improved household purchasing power, particularly in high-skilled white-collar sectors. The disinflationary environment is expected to ease financial burdens on consumers, fueling spending on discretionary items like electronics, furniture, and experiences.
David Mann, Chief Economist for Asia Pacific at Mastercard, emphasized the importance of sustaining economic momentum as volatility subsides. “With easing monetary policies and global growth stabilizing, Malaysia is well-positioned to outperform, supported by strategic investments and a thriving labor market,” he said. The report also highlighted Penang’s burgeoning role in manufacturing and exports, positioning it as a key driver of national economic resilience under the 13th Malaysia Plan.
