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World Bank lowers Malaysia’s economic growth

The World Bank projects Malaysia's 2025 economic growth at 3.9%, lower than regional peers, prompted by global economic challenges and U.S. tariffs.

The World Bank projects Malaysia’s economic growth at 3.9% for 2025, citing global challenges. This forecast, shared by Dr. Apurva Sanghi, World Bank Lead Economist for Malaysia, contrasts with higher projections for Vietnam (5.8%), Indonesia (4.7%), the Philippines (5.3%), Cambodia (4.0%), and Thailand (1.6%), while China is expected at 4.0%. Bank Negara Malaysia’s Governor, Datuk Seri Abdul Rasheed Ghaffour, noted that the current 4.5%–5.5% GDP growth target may be revised downward due to U.S. tariffs, though no immediate adjustments are planned. The IMF also lowered Malaysia’s 2025 GDP growth forecast to 4.1% from 4.7%.

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Quote: “Dengan mengambil kira semua kemungkinan kekangan, kami (Bank Dunia) mengunjurkan kadar pertumbuhan 2025 Malaysia pada 3.9 peratus.” – Dr. Apurva Sanghi

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