Malaysia's Q2 2025 Business Outlook: Steady Growth Amidst Sectoral Variations

Malaysia's Business Confidence Remains Steady in Q2 2025: A Sectoral and State-Level Analysis Kuala Lumpur, Malaysia – May 28, 2025 – Malaysia's business landscape is expected to remain stable during the second quarter of 2025, according to Datuk Sri Dr. Mohd Uzir Mahidin, Chief Statistician of Malaysia. This positive outlook is supported by data released by the Department of Statistics Malaysia (DOSM), which reveals a 2% increase in business confidence compared to the previous quarter. However, this growth is not uniform across all sectors. The services sector demonstrates the highest confidence levels, reflecting a robust and optimistic outlook. In contrast, the wholesale and retail trade sectors show comparatively lower confidence. This disparity highlights the need for a nuanced understanding of the economic climate, considering the specific challenges and opportunities within each sector. "The services sector consistently shows strong confidence levels," said Datuk Sri Dr. Mohd Uzir Mahidin during an interview, "while the wholesale and retail sectors are exhibiting some caution." The DOSM data also provides a state-level analysis, revealing variations in confidence across Malaysia. Terengganu shows the highest confidence at 18%, while Kelantan shows the lowest at -7.8%. This regional diversity suggests that economic policies and strategies should be tailored to reflect the unique circumstances of each state. Despite the mixed signals, the overall positive trend indicates a resilient Malaysian economy poised for continued growth.