PUTRAJAYA: Bank Negara Malaysia (BNM) will continuously review the nation’s economic growth to determine if current targets need to be adjusted owing to ongoing geopolitical challenges and uncertainties, says Akmal Nasrullah Mohd Nasir.
The Economy Minister said the reviews would be conducted despite the government’s positive projections of 4% and 4.5% economic growth in the wake of these challenges.
“For now, the government is maintaining the country’s economic growth projections this year at between 4% and 4.5% despite ongoing geopolitical challenges and external uncertainties.
“This matter will constantly be reviewed by BNM and they will ultimately decide whether we maintain, increase or lower this target.
“But, for now, indications show that we are sticking with this target,” Akmal Nasrullah told reporters after launching the 13th Malaysia Plan (13MP) implementation policy monitoring system, known as MyRMK yesterday.
He acknowledged that global geopolitics remains a primary challenge for the nation’s economy this year, although it proved resilient, including surpassing growth targets in 2025 despite facing headwinds.
He cited the 5.2% gross domestic product growth for 2025 and its 6.3% momentum seen in the fourth quarter, lowest unemployment levels since 2011 (2.9%) and moderate inflationary pressure of 1.4% as indicators that helped drive growth.
He also said the 2024 Household Income and Expenditure Survey revealed that absolute poverty had decreased to 5.1%, affecting around 416,000 households, while hardcore poverty had shrunk to 0.09%, impacting around 7,200 households.
On the ongoing conflict in Iran, Akmal Nasrullah said his ministry will assess its broader macroeconomic impact on the nation, particularly on inflation and supply chain disruptions.
“The effects go beyond just a rise in oil prices. The magnitude of the impact depends heavily on the intensity of the conflict and how long it persists,” he said.
Akmal Nasrullah said a swift resolution to the conflict is unlikely based on current indications and economic recovery would involve a long process.
“Economic recovery will take time once the dust settles. Even if the conflict ends, it does not mean that everything will return to normal,” he added.
“Some matters will require more time to fully recover.”
Meanwhile, Akmal Nasrullah said a special multi-ministerial committee will meet with the Cabinet today to evaluate the economic effects of the current conflict, including on the 13MP.
The committee, he added, comprises representatives from the Economy Ministry, Finance Ministry, Energy Transition and Water Transformation Ministry, the Agriculture and Food Security Ministry, the Domestic Trade and Cost of Living Ministry, the Investment, Trade and Industry Ministry and BNM.
“Every relevant ministry is closer to the actual situation at the operational level to take necessary mitigation steps, while the Economy Ministry will continue to monitor the situation comprehensively,” he added.
As of yesterday morning, Brent crude oil price increased to US$100 per barrel after dropping to US$91 on Wednesday.
The fluctuation in crude oil prices came following the closure of the Strait of Hormuz by Iran on Monday, following escalating attacks by the United States and Israel.
