Johor Records Highest Economic Growth of Eight Percent in 2025
PETALING JAYA: Johor recorded the highest economic growth among all states at 8.0 percent, with its economic value reaching RM171 billion in 2025, contributing nearly 10 percent to Malaysia’s economy.
This was followed by Penang at 7.3 percent, Selangor at 6.3 percent and Perak at 5.7 percent, all surpassing the national economic growth rate of 5.2 percent.
In addition, Selangor, the Federal Territory of Kuala Lumpur, Johor, Sarawak and Penang remained the main contributors to Malaysia’s economy, accounting for 67.9 percent.
Malaysia’s Chief Statistician, Datuk Seri Dr. Mohd Uzir Mahidin said Malaysia’s economy grew by 5.2 percent in 2025, maintaining the growth momentum recorded in the previous year, with value added reaching RM1.74 trillion compared to RM1.65 trillion in 2024.
According to him, this performance was supported by broad-based growth across all major economic sectors.
“The services sector, remaining the largest contributor to the economy with a share of 59.5 percent, grew by 5.4 percent.
“The manufacturing sector meanwhile increased by 4.5 percent, while the next contributor to this growth was the agriculture sector, which recorded an increase of 2.2 percent.
“Meanwhile, the mining and quarrying sector grew modestly at 0.6 percent compared to 1.2 percent in 2024.
“In contrast, the construction sector continued to maintain momentum as the fastest-growing sector, recording a growth of 12.2 percent, driven by strong expansion across all segments,” he said in a statement.
He said the development of the data centre industry has become the main driver of the state’s economic growth, particularly in the services, manufacturing and construction sectors.
“The services sector grew strongly at 9.9 percent, supported by the utilities, transport and storage, as well as information and communication technology (ICT) sub-sectors, which surged by 20.8 percent.
“This surge reflects the rapid development of digital infrastructure following the growth of data centres and the strengthening of logistics activities in the state.
“The wholesale and retail trade, food and beverage, and accommodation sub-sectors also increased by 6.7 percent, driven by increased domestic and international tourism activities that continue to stimulate consumer spending and demand for related services,” he said.
Utusan Malaysia