Prime Minister Datuk Seri Anwar Ibrahim said the government is considering revising the Gross Domestic Product (GDP) growth projection outlined in Budget 2025 after gaining further clarity on the United States’ tariff policies and Malaysia’s negotiations with Washington.
“The Ministry of Finance and Bank Negara Malaysia are assessing the impact of the tariffs and will revise the GDP growth forecast once there is greater certainty regarding the implementation of President Donald Trump’s tariff policy and the outcome of negotiations with the US,” Anwar told the Special Parliamentary Meeting on the US tariffs today.
Calling the situation dynamic, Anwar—who also serves as Finance Minister—admitted that it was increasingly unlikely for the country to meet its current GDP growth target of between 4.5% and 5.5% for this year.
Following the US’ announcement of import tariffs on 2 April, the MADANI government took swift action, including the establishment of the National Geo-Economic Coordination Centre (NGCC) just two days later. Anwar chairs the NGCC, which is led by the Ministry of Investment, Trade and Industry (MITI) and involves various ministries and relevant agencies.
Since its formation, the NGCC has convened three times and serves as an integrated platform to monitor, assess, and coordinate Malaysia’s response to shifting global trade dynamics, tariff shocks, and non-tariff barriers.
“The NGCC aims to ensure that strategic industries, exporters, and economic planning remain resilient and competitive amid a challenging and uncertain environment,” said Anwar.
In a broader context, Anwar said that due to the global economic uncertainty, Malaysia—like other open economies—must come to terms with a more moderate economic outlook.
“We must accept the reality that based on current data, we are facing a more modest economic forecast,” he added.
The Prime Minister noted that global economic growth projections have been downgraded, citing the International Monetary Fund’s World Economic Outlook report, which revised the 2025 global growth forecast from 3.3% to 2.8%.
He said the revised growth forecasts also affected key economies: the United States was revised to 1.8% from 2.7%, Indonesia to 4.7% from 5.1%, and Thailand to 1.8% from 2.9%.
“Malaysia’s growth projection has also been adjusted to 4.1% from 4.7%. This new expectation indicates more modest economic expansion across the board, including in Malaysia,” said Anwar.
To strengthen coordination across the region, Anwar said an ASEAN Geo-Economic Task Force has also been formed, as agreed during the special ASEAN Economic Ministers meeting on the US reciprocal tariffs.
