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ECONOMY Minister Datuk Seri Rafizi Ramli projected that Malaysia's economy would grow between 4.5% and 5.5% in 2025, supported by a stable and resilient external environment, expected stronger domestic demand, and improved labor market conditions.
"This projection is in line with estimates from several international agencies, including the International Monetary Fund (IMF), which forecasts Malaysia's GDP to grow by 4.7%, and the World Bank, which expects a growth rate of 4.9% for 2025," he told the Dewan Rakyat today.
Meanwhile, he said the global economic uncertainty triggered by US President Donald Trump's decision to raise tariffs on China, Canada, and Mexico presents an opportunity for Malaysia's government to fast-track economic reforms, said Economy Minister Datuk Seri Rafizi Ramli.
Rafizi acknowledged that the new policy developments under the Trump administration are expected to have an impact on the global economy, creating volatility in investor sentiment, especially in the short term.
"Naturally, Malaysia is not immune to these changes, particularly as we are a major trading nation, and the United States is one of our largest trading partners," he said to a question raised in the Dewan Rakyat today.
He was responding to a supplementary question from Chong Zhemin (PH-Kampar) who asked about the impact of the trade war on Malaysia's economic projections, following Trump's tariff hikes on China, Canada, and Mexico.
The minister explained that the Malaysian government is addressing the situation in a coordinated manner, with leadership from the Ministry of Investment, Trade, and Industry (MITI).
In navigating the economic uncertainty, Rafizi emphasised the need for the government to stay alert to developments, not just within Malaysia, but globally, in order to maintain positive relationships with trade partners.
"If any issues arise, even if they do not directly involve Malaysia, the government must act proactively to resolve them swiftly, addressing one issue after another, to ensure we maintain positive relationships with trading partners such as the United States and China," he said.
At the same time, he stressed the importance of prioritising efforts to strengthen the nation's economic foundations, including improving fiscal health, enhancing economic activity, and continuing policies and initiatives that are investment- and business-friendly.
While acknowledging that the tariff hikes may lead to short-term economic uncertainty, Rafizi pointed out that long-term investment decisions would drive Malaysia's future economic competitiveness.
"We need to manage investor sentiment in the stock market and currency in the short term. However, the billion-ringgit investments that create job opportunities and drive the economy over the next 5, 10, or 15 years are long-term decisions that will benefit the country," he said.
Rafizi also projected that Malaysia's economy would grow between 4.5% and 5.5% in 2025, supported by a stable and resilient external environment, expected stronger domestic demand, and improved labor market conditions.
"This projection is in line with estimates from several international agencies, including the International Monetary Fund (IMF), which forecasts Malaysia's GDP to grow by 4.7%, and the World Bank, which expects a growth rate of 4.9% for 2025," he added. – February 13, 2025
Economy Minister, Datuk Seri Rafizi Ramli, Growth, Trump, Tariffs
