Boosted by strong service, manufacturing and construction sectors, Malaysia's gross domestic product (GDP) rose 6.3% on year in the fourth quarter, the most-rapid annual increase of the nation's economy since it emerged from the pandemic era, reported the Department of Statistics Malaysia (DOSM) on Friday.

The nation's services sector expanded by 6.3% on year in the fourth quarter, while the manufacturing grew by 6.1%, and the construction segment by 11%, reported DOSM.

Malaysia's agriculture sector grew by 5.4% on year in the fourth period, while mining and quarrying gained by 2%, added officials.

By expenditure, private consumption (consumer outlays) rose 5.3% on year in the fourth quarter, while government outlays grew by 8% and gross fixed capital grew by 9.3%, reported DOSM.

For the full year 2025, Malaysia's GDP increased by 5.2%, on year.

Malaysia's economic "growth in the fourth quarter of 2025 continued to be supported by strengthening domestic demand which was driven by tourism-related activities during public and school holidays, higher expenditure on school-related items due to changes in the 2026 academic calendar, festive-related spending, stable labor market

conditions and sustained investment activity, "said Dato' Sri Dr. Mohd Uzir Mahidin, Chief Statistician of Malaysia, in a prepared statement.

The year 2026 should see a sustained expansion of Malaysia's economy, if recent forecasts are on target.

For 2026, the nation's GDP is expected grow by 4% to 4.5% on year, the Ministry of Finance estimated in October.

In January, the International Monetary Fund (IMF) forecast the Malaysian GDP would grow by 4.3% on year, in 2026.

Also in January, the ASEAN+3 Macroeconomic Research Office, aka AMRO, pegged Malaysia's economic expansion in 2026 at 4.4% on year.