KUALA LUMPUR, September 7 — Bank Negara Malaysia (BNM) is holding firm to its 2025 gross domestic product growth projection of 4.0 to 4.8 per cent, with Governor Datuk Seri Abdul Rasheed Ghaffour citing balanced risks and gains despite lingering uncertainties from ongoing tariff negotiations.
The central bank’s assumptions include potential tariff rates between 25 and 30 per cent in talks with the United States, although recent developments — including Washington’s decision to impose a reduced 19 per cent tariff on Malaysian imports from August 1 — have eased some concerns.
Abdul Rasheed said the recent cut in the overnight policy rate to 2.75 per cent was a pre-emptive move to bolster domestic growth amid moderate inflation, with the electrical and electronics and tourism sectors expected to help cushion export moderation in the second half of the year.
While external conditions remain volatile, he stressed that Malaysia’s economy remains strong and well-positioned to navigate the evolving trade landscape.
