Projected Economic Growth Of 4.5 % For Second Quarter Proves Of MADANI Govt's Reform Efforts - Nga

KUALA LUMPUR, July 21 (Bernama) -- The projected national economic growth of 4.5 per cent for the second quarter of 2025 is a testament to the effectiveness of the MADANI Government’s reform efforts under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, particularly in revitalising the economy and enhancing the well-being of the people.

Housing and Local Government Minister Nga Kor Ming said the projection signals that the government’s comprehensive, people-centred fiscal policies are beginning to yield tangible, positive outcomes.

"Despite increasingly challenging global pressures, steady domestic demand along with growing consumer and investor confidence reflect the effectiveness of the government's approach," he said in a statement today.

The Department of Statistics Malaysia recently announced that the national economy is projected to expand by 4.5 per cent in the second quarter of 2025 based on preliminary estimates, surpassing the increase of 4.4 per cent in the previous quarter.

According to Nga, the construction sector is reported to show robust performance with an expected growth rate of 11.0 per cent, driven primarily by non-residential and housing development projects.

Meanwhile, he said the services sector is expected to grow by 5.3 per cent, up from 5.0 per cent in the previous quarter,  while the manufacturing sector recorded a growth of 3.8 per cent.

Nga said the overall growth expectation was driven by domestic demand,  strengthened through various initiatives of the MADANI Government, including the implementation of the Basic Rahmah Contribution (SARA), Cash Rahmah Contribution (STR) and the increase in the minimum wage, which has helped increase the income and purchasing power of the people.

“However, the MADANI Government continues to be vigilant with external risks such as global trade tensions and the ongoing tariff war.

“The MADANI Government remains committed to ensuring inclusive economic growth and the well-being of all segments of the people is always guaranteed,” he said.

Nga also welcomed the Bank Negara Malaysia’s (BNM) decision to lower the Overnight Policy Rate (OPR) to 2.75 per cent as a proactive measure to support the country’s economic activities, especially in the real estate sector

-- BERNAMA