KUALA LUMPUR, July 29 (Xinhua) -- Malaysia's central bank trimmed Malaysia's growth forecast to 4 percent to 4.8 percent in 2025, down from 4.5 percent to 5 percent previously.
Bank Negara Malaysia (BNM) said in a statement on Monday that the updated growth projections account for various tariff scenarios.
It noted that this forecast remains subject to uncertainties surrounding the global economy, both on the downside and upside.
It added that continued demand for electrical and electronic goods and robust tourism activity could raise Malaysia's export and growth prospects.
"The Malaysian economy remains resilient despite global uncertainties. 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 provide a supportive environment to pursue structural reforms for a more resilient and competitive Malaysia in the future," BNM governor Abdul Rasheed Ghaffour said.
According to the bank, the global growth outlook is affected by shifting trade policies and uncertainties surrounding tariff developments, as well as geopolitical tensions.
"As a small open economy, Malaysia's growth prospects will be shaped by these developments. It is to Malaysia's advantage that our economy is facing these external headwinds from a position of strength," it said.
The latest indicators, including advanced estimates for the second-quarter growth, continue to point towards sustained strength in economic activity.
It added that domestic demand has been resilient and will continue to support growth going forward. ■
