KUALA LUMPUR: Putrajaya will decide on whether Malaysia’s gross domestic product (GDP) growth projection for 2025 should be revised based on how the US tariff situation unfolds, says Datuk Seri Amir Hamzah Azizan.
“The tariff announcement was last week. At the moment, it was the first salvo that actually went up. As we go in and we discuss, things may change,” the Finance Minister II said on the sidelines of the 12th Asean Finance Ministers and Central Bank Governors Meeting here yesterday.
“As the outcome changes, I think the GDP will also be re-established based on the final outcome,” he said, adding that Bank Negara will be looking into the relevant data.
“The difference for Malaysia is, I think, that we have to be realistic – this is a challenging environment for the globe but practical and calm minds will help us pave the way forward.”
Bank Negara has forecast that the country’s GDP growth for 2025 would be between 4.5% and 5.5%.
On April 4, Investment, Trade and Industry Ministry (Miti) said the GDP forecast was under review, adding that the earlier projections were based on a cautious outlook.
It noted that the scope and severity of the tariffs have gone beyond even its most conservative expectation.
On whether the 5% forecast was still achievable, Amir Hamzah said: “If the final outcome is going to be a lot more challenging then we would address the growth estimates for the future, but for the moment, we are still working through it.”
He said discussions are ongoing with the United States and that Malaysia will work with regional partners to see how they can work together, including towards diversification.
“When that is addressed, I think we will adjust the growth whether positive or negative accordingly.”
As for the strength of the ringgit, he said Malaysia has always had an open economy and Bank Negara’s objective has always been to maintain market stability.
He said while the country had seen volatility before, a stable and predictable environment will ultimately help.
As for the tariffs, he said the government would analyse the situation and see how to react.
He said the special committee headed by Prime Minister Datuk Seri Anwar Ibrahim would look into the impacts of the situation and the steps to be taken.
He also said it is important for Asean partners to work together to build resilience.
“We have to engage to see how we can get to a better outcome and Miti is taking the lead in terms of approaches on how we deal with the US,” he added.
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