Malaysia's 2025 GDP Forecast Trimmed to 4.5% Amid Tariff Pressures

RHB Investment Bank has revised Malaysia's 2025 GDP forecast to 4.5% from 5.0% due to rising trade tensions and tariff hikes that threaten the nation's export-driven economy. The investment bank expects heightened headwinds for the economy, particularly in the trade and manufacturing sectors, from the second quarter of 2025. The central bank may consider a 25 basis point cut in the overnight policy rate in the second half of 2025 if growth dips below the official target range.