Malaysia's Economy Projected To Grow 4.0-4.8% In 2025, BNM Governor
In its latest assessment, BNM highlighted that despite the shifting global economic landscape—marked by trade uncertainties, tariff developments, and geopolitical tensions—Malaysia is navigating these challenges from a position of strength. The central bank's updated forecast accounts for multiple tariff scenarios, ranging from sustained trade frictions to more optimistic outcomes from ongoing global negotiations.
'The Malaysian economy remains resilient despite global uncertainties,' said BNM Governor Dato' Sri Abdul Rasheed Ghaffour. 'This is, in part, the outcome of structural reforms that we have undertaken over the years. The sustained strength in economic activity and moderate inflation provides a supportive environment to pursue structural reforms for a more resilient and competitive Malaysia in the future.'
Domestic demand remains the key growth driver, supported by steady labour market conditions and policy measures that continue to bolster private consumption. Investment activity is expected to gain momentum on the back of multi-year infrastructure projects and the realisation of approved investments, especially those aligned with national development plans.
On the external front, BNM noted that favourable trade negotiation outcomes, sustained demand for electrical and electronic (E&E) products, and a robust rebound in tourism could provide additional upside to Malaysia's growth trajectory.
Headline inflation for 2025 is expected to remain contained, averaging between 1.5% and 2.3%. This projection reflects a more moderate cost and demand outlook compared to earlier forecasts. The central bank expects limited inflationary pressure from global commodity prices and manageable domestic cost conditions, with minimal disruptions anticipated from local policy changes.
The central bank emphasised that this environment—marked by stable prices and robust economic activity—offers the right conditions for Malaysia to advance its structural reform agenda, aimed at building a more competitive and future-ready economy.
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