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Malaysia
AsiaSoutheast Asia

Malaysia’s third-quarter GDP growth surges to 5.2%, defying Trump’s tariffs

The country is counting on resilient domestic demand to provide a buffer as US levies threaten exports

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Malaysia’s latest GDP print puts it on track to meet the official forecast of 4 per cent to 4.8 per cent growth this year. Photo: AFP
Bloomberg
Malaysia’s growth unexpectedly accelerated in the third quarter, with the economy firing across all sectors and exports defying US President Donald Trump’s imposition of higher tariffs.

Gross domestic product rose 5.2 per cent in the July-September period from a year earlier, according to advance estimates from Malaysia’s Department of Statistics on Friday. That is faster than even the highest estimate in a Bloomberg survey and exceeds the pace of expansion seen in the previous three quarters.

“Domestic demand continued to be the primary engine of growth, particularly in tourism-related activities during public and school holidays,” Malaysia’s chief statistician Mohd Uzir Mahidin said in a statement, noting that activity was supported by cash disbursements and an interest-rate cut.

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Sustained capital investment and rising external demand bolstered the expansion, despite uncertain trade policies, he added.

Trump’s global trade war has so far failed to derail Southeast Asia’s economies, though they are facing some of the highest tariff rates. Vietnam’s 8.23 per cent growth was the fastest expansion since 2022 as factories went into overdrive shipping goods to the US before the levies hit in early August. And while Singapore’s third-quarter growth slowed to 2.9 per cent from a year ago, that still beat analyst expectations.
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The Philippines, Thailand and Indonesia are set to unveil their third quarter figures next month.

Malaysia’s trade numbers for September offer a snapshot of the muted impact of the 19 per cent levy on shipments to the US. Exports grew 12.2 per cent, beating the highest estimate in a Bloomberg survey, while imports rebounded by 7.3 per cent, bringing the trade surplus to 19.86 billion ringgit (US$4.7 billion), according to data also released on Friday. Export growth in September was recorded across all sectors, according to Malaysia’s Investment, Trade and Industry Ministry.

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