ECONOMY / KEY INFRASTRUCTURE UPDATES
The full-year Gross Domestic Product (GDP) growth outlook for 2025 has been revised downward following the imposition of new tariffs by the United States on selected Malaysian exports. The International Monetary Fund (IMF) has lowered its GDP growth forecast for Malaysia from 4.7% to 4.1%, reflecting concerns over weaker trade performance and potential spillover effects on domestic industries. Similarly, Bank Negara Malaysia has adjusted its 2025 GDP growth projection from 4.5% – 5.5% to a more moderate range of 4.0% – 4.8%.
To cushion the impact of the newly imposed U.S. tariffs, Malaysia is actively diversifying its export markets to reduce reliance on the United States. These efforts are reinforced by the recently tabled 13th Malaysia Plan, which outlines strategic priorities such as the development of high-value industries, promotion of green growth initiatives, enhancement of skills development, improvement of rural infrastructure, strengthening of governance, and broader export diversification to build long-term economic resilience.
Despite these challenges, Malaysia’s economy is expected to remain resilient, with ongoing policy adjustments aimed at sustaining growth, managing inflation, and strengthening its global trade position.
