KUALA LUMPUR, Nov. 18 -- Malaysia's economic growth is set to be stronger than previously expected this year, driven largely by domestic consumption, according to the latest outlook from BMI Research, a unit of Fitch Solutions.

Data released on November 14 showed Malaysia's economy expanded 5.2 per cent year-on-year (y-o-y) in the third quarter of 2025, up from 4.4 per cent in Q2.

BMI noted that this likely marks the peak of growth for the year, but forecast a more modest slowdown in the final quarter.

As a result, BMI has revised Malaysia's 2025 growth forecast upward to 4.6 per cent, from its earlier projection of 4.2 per cent.

Growth in 2026 is maintained at 4.1 per cent, reflecting a stronger base for comparison this year.

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