Malaysia 1Q25 Balance of Payments - 19 May 2025

CA surplus hits nine-quarter high, but masked by deeper financial outflows

The current account (CA) surplus widened to RM16.7b (3.4% of GDP) in 1Q25, up from RM12.9b (2.6% of GDP) in 4Q24—the largest surplus since 4Q22

• The improvement was underpinned by a smaller deficit in secondary income and a wider goods surplus, partly offset by a larger services and primary income deficit. Slower GDP growth in 1Q25 (4.4% YoY; 4Q24: 4.9%) also contributed to the widening surplus.
  • Secondary income (-RM1.2b; 4Q24: - RM5.9b): lowest deficit in three quarters
    • Largely driven by an increase in inward remittances (RM11.1b; 4Q24: RM7.6b) and lower outward remittances (RM12.3b; 4Q24: RM13.4b).