This JETRO report details Malaysia's accelerating economic growth and improving investment environment with the latest trends for 2025.
Malaysia's economy showed remarkable recovery in 2024 with GDP growth of 5.1%, up significantly from 3.6% in 2023. Inflation remained low at 1.8% with unemployment stable at 3.3%. Total trade volume reached a record high of 2.87 trillion ringgit, up 9.2% year-on-year. Exports totaled 1.51 trillion ringgit (up 5.7%) while imports reached 1.37 trillion ringgit (up 13.2%).
Electrical and electronic products remain the export mainstay, accounting for 39.9% of total exports. Palm oil products also constitute an important export category. Foreign direct investment surged 33.4% to 51.5 billion ringgit, with the services sector dominating at 76.4% of total FDI. Investment in information and communication grew rapidly by 50.8%. Major investors include Singapore, Hong Kong, and the United States.
The government launched the National Semiconductor Strategy to promote transition to high-value industries. The data center investment boom continues, strengthening the digital economy foundation. Trade negotiations with the EU have resumed, and efforts to diversify trading partners are progressing. However, rising operational costs, wage increases, and competitive business environment remain challenges.
The report concludes that Malaysia has high potential for sustained economic growth by transitioning to high-value industries centered on semiconductors and digital sectors while strengthening its position as an ASEAN hub.