Sigma Capital

28-07-2025

Malaysia Lowers 2025 Growth Forecast Amid Tariff Uncertainty

Source: MIST

Trading Economics-


Malaysia’s economy is projected to grow between 4% and 4.8% in 2025, Bank Negara Malaysia said in a statement today. This was lower than an earlier forecast of 4.5% to 5.5%. The central bank cited global trade and tariff uncertainties as key risks to growth, warning that “shifting trade policies and uncertainties surrounding tariffs” are weighing on the global outlook. Headline inflation is expected to average between 1.5% and 2.3% this year. The bank noted its updated projections reflect various possible tariff scenarios, from prolonged tariff hikes to more favorable trade outcomes. While noting Malaysia’s economy remains on a “strong footing,” Governor Abdul Rasheed Ghaffour stated that growth prospects are still vulnerable to external risks. Malaysia faces a potential 25% U.S. tariff on its exports unless a deal is reached by August 1. The trade minister recently said talks with Washington were progressing well, though some sticking points on non-trade barriers remain.