Trade war will not hinder Malaysia’s GDP growth for 2025 - Rafizi

KUALA LUMPUR: Malaysia is on track to meet its 2025 gross domestic product (GDP) growth target despite the risks posed by the tariff war, said Economy Minister Datuk Seri Rafizi Ramli.

Rafizi noted that at least over the past month, optimism for Malaysia's medium- and long-term growth prospects has remained unchanged. Furthermore, the ringgit has strengthened in the past week.

However, he said the government is closely monitoring the risks, with the Ministry of Investment, Trade, and Industry (MITI) responsible for gathering input from all ministries.

The finance ministry has projected Malaysia's GDP to grow between 4.5 and 5.5 per cent in 2025.

The minister said the trade war would likely remain a permanent feature of the global economy and that Malaysia would need to navigate around the adjustments and volatility caused by it.

"I think the market will find a way to factor everything and price everything in due time. And eventually, it will come back to the value proposition that the Malaysian economy can propose to the world.

"On that note, I think some of the hypotheses that have resulted in a lot of interest on the Malaysian economy, for the last year or so, have not changed," Rafizi told reporters after launching the World Bank report titled "A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia" today.

He said the projection that the world will be more digital and artificial intelligence (AI) driven also has not changed, which would benefit Malaysia as a key semiconductor hub.

"That means demand for chips will go up and that will bolster Malaysia's trade. Our long-term plan is to make sure that Malaysia plays a pivotal role in that global supply chain, and that has not changed either. So a lot of our economic plans have been built around long-term megatrends," he added.

On the bill to monitor the carbon capture, utilisation and storage (CCUS) industry in Malaysia, he said it will be tabled in the current Parliament sitting. "We are going through some final drafting. The first draft was brought for discussion. We're going through some improvements based on feedback from stakeholders. So, the target is still to finalise and table the bill in the first week of March," the minister said.

-- BERNAMA

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