Malaysia GDP Forecast Cut to 4%-4.8% Amid Trade Uncertainty

Bank Negara Malaysia has lowered its 2025 GDP growth forecast to 4%–4.8%, down from 4.5%–5.5%, citing global trade uncertainty and external challenges.

The central bank emphasised that domestic demand, strong labour markets, and policy support remain key pillars of resilience. Analysts warned that unresolved tariff negotiations with the US could further depress growth if Malaysia fails to secure favourable terms by August 1. While policymakers see room for monetary easing, they stressed the importance of structural reforms and a stable macroeconomic framework to maintain competitiveness against Vietnam and Indonesia.