Malaysia's economy grows rapidly while tackling traffic and waste problems

Malaysia's economy grew by 5.2% in 2025, which was faster than experts predicted and the quickest pace in three years. At the same time, retail sales were up and the country's currency is expected to get stronger.

Separately, the country is dealing with major traffic issues, including a crackdown that seized over 1,000 luxury cars for violations and a report that traffic jams in the Klang Valley area cost the economy millions daily. The government is also taking action on environmental policy by banning imports of electronic waste and announcing a shift to a 'Made by Malaysia' industrial strategy.