Johor to Lead Malaysia's Economic Growth with 8.0% Expansion in 2025

Johor is poised to lead Malaysia's economic growth in 2025, with projections indicating an 8.0% expansion that will bring its economy to RM171 billion. This significant growth rate is expected to contribute nearly 10% to the overall Malaysian economy, outperforming other states such as Penang (7.3%), Selangor (6.3%), and Perak (5.7%). The national economic growth is forecast at 5.2% for the same year.

“

The services sector remains the largest contributor to the economy with a contribution of 59.5 percent, growing 5.4 percent.

Selangor, Kuala Lumpur, Johor, Sarawak, and Penang continue to be the primary economic engines for Malaysia, collectively accounting for 67.9% of the national economy. The services sector remains the dominant contributor, projected to grow by 5.4% and making up 59.5% of the economy. The manufacturing sector is expected to grow by 4.5%, while agriculture will see a 2.2% increase. The mining and quarrying sector is anticipated to grow at a slower pace of 0.6% compared to the previous year.

“

The construction sector continues to maintain its momentum as the fastest-growing sector, recording 12.2 percent growth driven by strong expansion in all segments.