KUALA LUMPUR: Putrajaya will decide on whether to revise Malaysia’s gross domestic product (GDP) growth projection for 2025 based on the outcome of the US tariff situation, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said Bank Negara is set to look into the relevant data.
"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,” he told reporters at the sidelines of the12th Asean Finance Ministers and Central Bank Governors Meeting here on Monday (April 7).
"As the outcome changes, I think the GDP will also be reestablished based on the final outcome,” he added.
"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,” Amir Hamzah said.
Bank Negara has forecast that the country’s GDP growth for 2025 would be between 4.5% and 5.5%.
On whether the 5% forecast was still achievable, Amir Hamzah said that will depend on the outcome of the situation.
“If the final outcome is going to be a lot more challenging then like any normal country, we would address the growth estimates for the future but for the moment, we are still working through,” he said.
He said discussions are on-going with the United States. He added that Malaysia will work with regional partners to see how they can work together including diversification.
“When that is addressed I think we will adjust the growth whether positive or negative accordingly,” he said.
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 was 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 the Investment, Trade and Industry Ministry is taking the lead in terms of approaches on how we deal with the US at this instance,” he added.
“ From the government’s point of view, we have set up a special committee headed by prime minister that will look at the impact and what we have to do,” he said.
US President Donald Trump announced a series of tariffs on April 3.
In an immediate reaction, Malaysia said it would not be considering retaliatory tariffs to the US following the recent 10% tariff hikes and reciprocal tariffs on Malaysian exports to the country.
The 24% tariff on goods entering the United States will begin on April 9 as Trump announced new import duties against its trading partners.
This is part of a broad trade policy targeting countries which have large trade deficits with the US.
It, however, does not cover all Malaysian goods exported to the US.
On the performance of regional bourses, Amir Hamzah said the Malaysian market has been a lot more resilient compared to others.
“As you have seen, the last week has been a very challenging week for financial markets globally but in comparison, the Malaysian market has been a lot more resilient than other markets.
"I think the difference is we have a lot of institutional support that has been able to keep Malaysia more stable than others,” he said.
He said this also presents investors the opportunity to come back to the Malaysian market, adding that this would be a good time.
Asian markets plunged this morning in a knee jerk reaction to the tariff trurmoil.
