Bank Negara Malaysia (BNM) said the country's economy remains in a strong position and is expected to grow between 4.0% and 4.8% in 2025, taking into account various possibilities related to US tariffs that are expected to be finalized soon.
The figure is lower than the initial projection of 4.5% to 5.5%, with BNM explaining that the new forecast includes scenarios such as continued tariff increases and a more positive outcome of trade negotiations.
The United States has threatened to impose a 25% import tariff on Malaysian goods, but has given room for negotiations before the effective date on August 1.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour stressed that the Malaysian economy remains resilient, thanks to the implementation of structural reforms that have been carried out over the past few years.
Malaysia's economy grew 4.5% in the second quarter of 2025, slightly higher than the 4.4% in the first quarter. This growth was driven by stable consumer demand, despite weak exports.
BNM expects headline inflation to be cooler than previously projected, averaging between 1.5% and 2.3% in 2025, due to more moderate costs and demand.
This is lower than the previous forecast of 2.0% to 3.5%.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim last week announced several initiatives to help the people, including a ‘One-Off’ cash handout, a reduction in the price of RON95 petrol and a freeze on highway toll increases.
