Projects a resilient growth outlook despite rising trade protectionism
- Bank Negara Malaysia (BNM) projects 2025 GDP growth of 4.5% – 5.5% (2024: 5.1%), matching the Ministry of Finance’s (MoF) projection and in line with our in-house forecast of 4.8%.
- Growth will be driven by strong domestic demand, ongoing employment and income growth, robust investment, Budget 2025 measures, and Malaysia’s diversified economy.
- While domestic demand is expected to be strong, external headwinds remain the key risk to growth, including Trump’s restrictive trade policies and tariffs, geopolitical tensions and commodity disruptions. This brings about a higher level of uncertainty and explains the wide range in the growth projection.
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