Qualampur: Bank Negra Malaysia (BNM) hopes to modify its 2025 Gross Domestic Product (GDP) development forecast within the next one to two months and is avoiding immediate adjustment to avoid making changes only on the basis of beliefs.
“We want to wait for more upcoming figures and look at the results of ongoing dialogues (announcement of US Liberation Day Tariff in early April). We have already published our forecast conservative beliefs in late March, but the announcements of Post-Liberation Day have been beyond expectations,” Governor Datuk Shik Abdul Rashid Abdul Gafar said on a media briefing.
BNM released its 2025 GDP growth forecast for Malaysia at the end of March, with an extension between 4.5% and 5.5% for the year.
The governor said that BNM now hopes that development will be slightly lower than before. “We admit that we need to amend. But we want to lay some concrete basis for some beliefs.”
He said that modifying premature approaches may not be healthy or positive for businesses.
“This is important because if we have just come up with an amendment and need to be revised the next day, it will add more uncertainty to the already increased environment.”
Abdul Rashid announced in briefing, the Malaysian economy expanded 4.4%(Q4’24: 4.9%) in the first quarter of 2025 (Q4’24: 4.9%), which was announced by Abdul Rashid.
Domestic expenses were maintained amidst positive labor market conditions and income related policy measures, including minimum wages and amendment on top side of civil servant salary.
The expansion in investment activities was supported by the attainment of new and existing projects.
In the outer region, export growth was primarily slow due to low mining exports. It was partially offset by strong electrical and electronics (E&E) export and tourism activity.
At the same time, import increase, although inspired by strong demand for more moderate, capital goods, reflecting continuous investment and business activities.
On the supply side, it was operated by development services and manufacturing sectors.
The service sector was supported by high government services, while strong E&E production reduced the performance in the manufacturing sector.
However, after a strong performance in the last three years, the sale of motor vehicles and generalization in production affected the growth of services and manufacturing sectors respectively.
The total increase in the mining area between low oil and gas production was weighed by a contraction.
At a quarter -limit, on seasonally adjusted basis, development was expanded by 0.7% (Q4’24: -0.2%).
In the first quarter of 2025, the Central Bank said, Ringit remained roughly stable.
The nominal effective exchange rate against the currencies of Malaysia’s leading trade partners increased by 0.01%.
Ringit appreciated 0.8% against the US dollar, which is primarily inspired by the weakening of Greenback, as the growing uncertainties on Washington’s trade policy resulted in higher hopes in US economic growth.
External factors are expected to continue to affect the exchange rate of the ring.
Despite this, Malaysia’s positive macroeconomic possibilities will provide medium -term support for the ongoing ring -signed ringing of structural reforms.
BNM is committed to ensuring systematic functioning of the domestic foreign exchange market, Abdul Rashid said.
