KUALA LUMPUR: Malaysia's central bank will wait for the global situation on trade tariffs to settle before making policy recommendations or revising growth forecasts, its governor said on Thursday.
With a tariff of 24% on goods shipped to the United States, Malaysia was among several Southeast Asian nations facing hefty U.S. levies before U.S. President Donald Trump announced a 90-day pause on their implementation.
"Once we have greater clarity on the details of the tariffs announcement, that's when we are able to make more robust forecasts and assessments on the impact and potential growth of the economy this year," Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour told a press conference after a meeting of Southeast Asian finance ministers and central bank chiefs.
Malaysia's central bank has forecast economic growth in 2025 to expand between 4.5% and 5.5%, but is currently reviewing the estimate due to global uncertainties and market volatility. Malaysia's economy grew 5.1% in 2024, picking up from the 3.6% growth in 2023, driven by strong domestic demand, record approved investments, and robust exports.
Malaysia's government has said it will not take retaliatory measures and would instead negotiate with the U.S. for mutually beneficial solutions.
Abdul Rasheed said volatility in the ringgit would remain and Malaysia will continue to encourage inflows from its exporters to boost the currency.
The central bank will ensure the ringgit market remains orderly with no excessive volatility, Abdul Rasheed added. - Reuters
