Malaysia’s economy posted a 4.4% expansion in the second quarter of 2025, buoyed by resilient domestic demand and household spending supported by a positive labour market.
The performance, outlined in Bank Negara Malaysia’s latest quarterly report, reflects continued momentum across key sectors, with the services sector covering retail, wholesale, food, and beverage strengthening to 5.1% growth, up slightly from 5.0% in Q1.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, speaking at a ceremony celebrating the achievements of local kopitiam chain Ali, Muthu & Ah Hock, said the figures demonstrated the critical role of domestic industries in shaping Malaysia’s economic resilience.
“The distribution trade sector, which includes retail and food and beverage, continues to stand as a major contributor to our GDP. The Q2 growth of 4.4% reflects the strong fundamentals of our domestic economy, supported by robust consumer demand and a positive labour market,” Armizan said.
Ali, Muthu & Ah Hock’s Record-Breaking Achievement
Malaysia Restaurant, Ali, Muthu & Ah Hock was officially recognised by the Malaysia Book of Records for selling an extraordinary 452,162 plates of nasi lemak in 2024 which is the highest ever achieved by a single brand in the country.
Founded in 2012, the kopitiam chain has grown from a humble concept into a well-known local brand with 18 branches nationwide, offering traditional Malaysian dishes in a modern yet nostalgic setting. Its unique branding combining the names of Malay, Indian, and Chinese characters represents Malaysia’s multi-ethnic unity and has become a hallmark of its identity.
The minister praised the achievement as more than just a business milestone.
“It reflects the strength of a local brand that resonates with Malaysians across backgrounds, and it also showcases how food can unite communities while contributing to the domestic economy,” he said.
In conjunction with the 2025 National Month celebrations, the chain launched a major promotion, a 50% discount on its nasi lemak menu, reducing the price from RM13.90 to RM6.80.
Armizan described this initiative as a two-pronged strategy one that not only boosts sales and market presence but also deepens national pride. He added that the effort embodies the chain’s philosophy of unity through its branding, while promoting Malaysia’s most iconic dish.
“This shows how businesses can go beyond pure profit-making to align themselves with national values and sentiments, fostering patriotism while strengthening their own market reach,” Armizan said.
Call for More Local Business
Armizan urged other domestic enterprises, particularly micro, small, and medium enterprises (SMEs), to emulate this model by adopting innovative strategies that combine economic objectives with cultural values.
As the ministry spearheading the Buy Malaysian Goods Campaign (KBBM), KPDN is encouraging local businesses to harness digital promotion tools not only to capture local markets but also to extend their reach globally. With Visit Malaysia Year 2026 on the horizon, Armizan stated that showcasing uniquely Malaysian products and services will be key in attracting international tourists.
“The role of local industries is vital in highlighting what makes Malaysia unique. By strengthening our brands with elements of culture and national identity, we can make them stand out on the international stage,” he said.
KPDN, tasked with overseeing Malaysia’s distribution trade sector including wholesale, retail, and food and beverage subsectors, reaffirmed its commitment to maintaining a healthy, competitive, and progressive trade environment. The sector remains a pillar of Malaysia’s GDP and a driver of employment and consumption.
Citing Bank Negara Malaysia’s latest report, Armizan emphasised that the second quarter’s 4.4% growth, underpinned by resilient domestic demand, demonstrated the country’s strong economic fundamentals. Household spending remained sustainable, driven by factors such as a positive labour market and supportive policies.
The minister expressed confidence that this momentum will persist, ensuring a positive economic climate for the rest of the year.
He also reiterated the government’s strong commitment under the 13th Malaysia Plan (RMK-13) to scale up the capabilities of SMEs. By strengthening competitiveness, enhancing value creation, and fostering innovation, SMEs will play a greater role in contributing to national development.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
