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Macro - Country Economic Forecasts - Malaysia

Publisher Oxford Economics
Published Aug 29, 2025
Length 9 Pages
SKU # OFE20418449

Description

Our 2025 GDP growth forecast for Malaysia is unchanged at 4.3%. Following the relatively strong performance in H1, we expect momentum to ease as the newly announced 19% US headline tariff rate takes effect, which is higher than our previous baseline of 10%. Sector-specific tariffs, particularly on semiconductors, which have been a key export to the US, are yet to be announced. We expect GDP to grow by 4.3% in 2026 and then gain momentum in the following years.

Table of Contents

9 Pages
Malaysia: Growth momentum is set to slow this year
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Politics

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