KUALA LUMPUR – Malaysia’s economy is projected to expand between 4.5% and 5.5% in 2025, reflecting a strong domestic foundation amid a turbulent global economic environment. Bank Negara Malaysia (BNM) Governor Abdul Rasheed Ghaffour, speaking at a press conference in Kuala Lumpur on Tuesday, emphasized that despite external uncertainties, Malaysia’s growth prospects remain positive, supported by resilient consumer spending and sustained investment activity.
The country’s economic outlook is underpinned by robust domestic demand, which has consistently played a vital role in maintaining growth momentum. Household consumption is expected to remain strong, driven by stable employment conditions, rising disposable income, and continued government support for key economic sectors. Private sector investment is also set to contribute significantly, particularly in high-value industries, infrastructure development, and digital transformation initiatives that align with Malaysia’s long-term economic agenda.
While the domestic economy remains on an upward trajectory, external challenges continue to pose risks. Geopolitical tensions, trade policy uncertainties, and fluctuations in global commodity prices could influence Malaysia’s trade performance. The export sector, which has traditionally been a crucial growth driver, is expected to face headwinds due to shifting global supply chain dynamics and protectionist trade measures in key markets. However, Bank Negara Malaysia has incorporated these risks into its projections and remains confident that the country’s economic fundamentals will provide sufficient resilience against external shocks.
Inflationary pressures are expected to be manageable, with headline inflation forecasted to range between 2.0% and 3.5% in 2025. This projection takes into account potential policy adjustments, including the government’s plans for subsidy rationalization and targeted fiscal reforms. While cost pressures may emerge from these domestic measures, the central bank expects global commodity prices to stabilize, helping to contain inflation within a moderate range. BNM has reaffirmed its commitment to closely monitoring inflation trends and implementing appropriate monetary policies to maintain economic stability.
The Malaysian economy recorded a robust expansion of 5.1% in 2024, driven by strong private consumption, resilient investment activity, and gradual improvements in external trade. Inflation remained under control at 1.8%, signaling an environment conducive to sustainable economic growth. The manufacturing, services, and construction sectors all posted positive growth, reflecting the broad-based nature of the country’s economic expansion. These achievements have positioned Malaysia favorably for continued progress in 2025, reinforcing confidence among investors and businesses in the nation’s long-term economic potential.
With a dynamic policy approach and a commitment to economic stability, Bank Negara Malaysia continues to play a central role in guiding the country’s financial and monetary policies. As Malaysia moves forward, the central bank remains focused on balancing growth with financial stability, ensuring that the country remains resilient and competitive in an evolving global landscape.
