KUALA LUMPUR – Malaysia is poised to achieve economic growth in the range of 4.5% to 5.5% in 2025, driven by resilient domestic demand and strategic policy measures, according to the latest projections from Bank Negara Malaysia (BNM). The announcement, delivered by BNM Governor Abdul Rasheed Ghaffour during a press conference in Kuala Lumpur, underscored Malaysia’s ability to navigate global uncertainties while maintaining a positive growth trajectory.
As the global economic landscape remains fluid, Malaysia’s domestic sector is expected to act as the primary engine of growth. Private consumption, fueled by stable income levels and improving labor market conditions, is anticipated to sustain strong momentum. Investment activity, both from the private sector and government-led infrastructure projects, will further bolster economic expansion. These factors, combined with proactive fiscal and monetary policies, provide a solid foundation for Malaysia to withstand external headwinds while capitalizing on emerging opportunities in global trade and commerce.
Despite these positive prospects, the external sector faces notable challenges. Rising geopolitical tensions, trade policy uncertainties, and supply chain disruptions continue to exert pressure on global trade flows, affecting Malaysia’s export performance. While external demand remains a crucial component of the economy, the pace of export growth is expected to be more measured compared to previous years. Policymakers have factored these risks into their projections, ensuring that Malaysia’s economic resilience is supported through a diversified growth strategy.
The inflation outlook for 2025 suggests a moderate rise, with headline inflation projected to range between 2.0% and 3.5%. This increase will likely be influenced by adjustments in domestic policy measures, such as subsidy rationalization and potential shifts in taxation structures. However, external cost pressures are expected to remain manageable, with global commodity prices showing signs of stabilization. The central bank reassured that inflationary risks will be closely monitored, and appropriate policy responses will be implemented if necessary to maintain price stability and safeguard consumer purchasing power.
The Malaysian economy demonstrated impressive resilience in 2024, registering a strong 5.1% growth rate while keeping inflation at a stable 1.8%. Key sectors, including manufacturing, services, and construction, recorded positive expansions, reflecting the underlying strength of the economy. Robust domestic spending, improving investor sentiment, and gradual recovery in exports contributed to this performance, laying the groundwork for sustained growth in 2025.
As the country moves forward, Bank Negara Malaysia remains committed to fostering macroeconomic stability and implementing forward-looking policies to support growth. With a clear emphasis on balancing economic expansion and financial stability, the central bank aims to navigate uncertainties while ensuring that Malaysia remains an attractive destination for investment and business development in the region.
