(Kuala Lumpur, 5th) — Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim stated that the Ministry of Finance and Bank Negara Malaysia are assessing the impact of the U.S. tariff policy. As negotiations with the United States progress, the government is considering revising the GDP growth forecast set in the 2025 budget.
He described the global situation as rapidly changing and indicated that Malaysia is unlikely to achieve the previously projected GDP growth of 4.5% to 5.5% this year.
The Prime Minister said that since the U.S. announced increased import tariffs on April 2, the Unity Government has been proactive, implementing several preliminary measures, including the establishment of the National Geoeconomic Coordination Centre (NGCC) on April 4. Chaired by Anwar, the NGCC includes the Ministry of Investment, Trade, and Industry as the secretariat, along with various government departments and relevant agencies.
During a special session in the Dewan Rakyat on Monday (May 5) addressing the U.S. tariff issue, Anwar explained that the NGCC serves as a comprehensive platform involving multiple agencies. It is tasked with monitoring, assessing, and coordinating responses to changes in global trade patterns, tariff impacts, and non-tariff barriers. The NGCC has convened three meetings to date.
On investments, Anwar noted that Malaysia achieved a record-high approved investment total of RM378.5 billion in 2024, a 14.9% increase compared to RM329.5 billion in 2023.
Acknowledging the significance of the U.S. as Malaysia's largest export destination and source of foreign direct investment, Anwar emphasized that any challenges in trade relations must be addressed pragmatically, based on national interests, while maintaining good relationships with all trading partners.
He highlighted that discussions with ASEAN, China, Japan, and regional countries have strengthened alliances and networks of like-minded nations. This issue is expected to feature prominently in the upcoming ASEAN-GCC-China Summit at the end of this month.
Preliminary observations indicate that Malaysia's export performance remains strong, with particularly encouraging growth in the electrical and electronics sectors.
Anwar added that structural reforms undertaken by the Unity Government have strengthened Malaysia’s supply chain ecosystem and diversified the country's export products and markets, ensuring resilience against external shocks to specific markets or products.