KUALA LUMPUR – Malaysia’s economy is expected to grow between 4.5% and 5.5% in 2025, driven by resilient domestic demand and strategic policy measures designed to navigate ongoing global uncertainties. Bank Negara Malaysia (BNM) Governor Abdul Rasheed Ghaffour, in a press conference held in Kuala Lumpur, outlined the country’s economic prospects for the coming year, highlighting the importance of sustaining growth while addressing external challenges that may affect trade and investment flows.
Malaysia’s economic growth outlook is primarily supported by a strong foundation in domestic consumption and private sector investment. Household spending remains a critical pillar of economic stability, fueled by steady employment growth, rising wages, and the continued expansion of consumer-oriented sectors. Government-led initiatives to promote industrial development, digital transformation, and green energy investments are also expected to provide additional impetus for growth.
Despite these positive drivers, external economic conditions remain volatile, with global trade facing significant headwinds. Geopolitical conflicts, trade restrictions, and currency fluctuations continue to impact international commerce, creating uncertainties for Malaysia’s export sector. While exports remain an essential component of the economy, their growth is expected to moderate due to shifting global trade dynamics. The central bank has factored these uncertainties into its projections, ensuring that Malaysia’s economic policies remain flexible and responsive to changes in the global market.
Inflation is projected to range between 2.0% and 3.5% in 2025, reflecting the impact of domestic policy adjustments and external cost pressures. The government’s approach to subsidy rationalization and fiscal policy reforms may contribute to price fluctuations in certain sectors, but overall inflation is expected to remain within a manageable range. Bank Negara Malaysia remains committed to ensuring that inflationary risks do not disrupt economic stability, with monetary policy tools available to respond to potential price pressures.
The year 2024 saw Malaysia achieve a strong economic performance, with GDP growth recorded at 5.1% and inflation remaining stable at 1.8%. All major sectors of the economy experienced expansion, with manufacturing, services, and construction posting positive growth figures. Consumer and investor confidence remained high, supported by stable financial conditions and effective government policies aimed at strengthening economic resilience. These achievements have laid a solid foundation for sustained growth in the coming year, reinforcing Malaysia’s position as a key player in the regional and global economy.
As Malaysia moves into 2025, Bank Negara Malaysia continues to play a pivotal role in shaping the country’s economic trajectory. The central bank remains focused on maintaining financial stability, fostering investment, and implementing policies that support long-term economic sustainability. With a strategic approach to policy-making and a commitment to balancing growth with risk management, Malaysia is well-positioned to navigate global economic challenges while ensuring continued prosperity for its people.
