Malaysia’s 2025 GDP Growth at 3.9%?

The World Bank has projected Malaysia’s economic growth to slow in 2025, citing the challenging global environment. It projects Malaysia’s 2025 [GDP] growth rate at 3.9%. Among Malaysia’s regional peers, the World Bank set Indonesia’s 2025 growth outlook at 4.7%, the Philippines at 5.3%, Cambodia at 4%, Thailand at 1.6%, and Vietnam at 5.8%.

 

The international financial institution said exports will face considerable external headwinds arising from the deterioration in the global environment. While external challenges are likely to impact investment decisions, private investment is expected to remain supported by ongoing multi-year investments and the implementation of previously approved projects, according to the World Bank. Nonetheless, domestic demand and private consumption supported by government measures will continue to drive growth. However, it noted this growth outlook is subject to several significant downside risks, primarily driven by increased uncertainty around trade and investment.   

The World Bank’s forecast on Malaysia’s 2025 GDP growth is even lower than the International Monetary Fund’s (IMF) recently downgraded projection. The IMF trimmed its growth forecast for Malaysia this year to 4.1%, from its January estimate of 4.7%. The readjustment came in line with a broader reduction in regional projections following the US’ tariff barriers. 

The Malaysian government is also reviewing its official growth projection of 4.5% to 5.5% for 2025, given recent developments casting uncertainty for investment and trade. 

Reference:

World Bank projects Malaysia’s 2025 GDP growth at 3.9%, Izzul Ikram /

theedgemalaysia.com,25 Apr 2025