According to reports from Jin10 data, Standard Chartered economists Jonathan Koh and Edward Lee stated that due to U.S. tariffs, the Malaysian economy may face headwinds in 2025. Although consumer spending and investment remain key to economic expansion, declining demand from trade partners will drag down growth.
They have revised down the GDP growth forecast from 5% to 4.2%, citing weaker than expected growth in the first quarter and tariff disruptions. The Bank Negara Malaysia is expected to cut interest rates by 25 basis points in July, bringing the policy rate down to 2.75%, with the possibility of further rate cuts.
Due to the inflation rate being lower than expected from the beginning of the year until now, along with weakening oil prices, it is expected that the inflation rate will drop from 2.2% to 1.8%.