Malaysia's Current Account Surplus to Remain Between 1.5% and 2.5% of GDP in 2025, Says Bank Negara Governor

Malaysia's current account surplus is expected to remain between 1.5% and 2.5% of GDP in 2025, according to Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour. The surplus in the second quarter of 2025 was RM300 million, or 1% of GDP, due to planned maintenance disrupting commodity production and a sharp rise in capital imports. Abdul Rasheed expects exports to strengthen in the long term with the operationalization of data centre investments and higher travel receipts.

Malaysia's current account surplus is projected to remain between 1.5% and 2.5% of GDP in 2025, according to Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour. The second quarter of 2025 saw a current account surplus of RM300 million, or 1% of GDP, primarily due to planned maintenance disrupting commodity production and a sharp rise in capital imports [1].

The current account surplus in the second quarter of 2025 was the smallest in at least over 26 years, as the goods account surplus narrowed to RM17.0 billion and the services account deficit decreased to RM3.3 billion. The secondary income deficit, however, ballooned to RM4.6 billion due to lower receipts into the country [1].

BNM governor Abdul Rasheed Ghaffour expects exports to strengthen in the long term, driven by the operationalization of data centre investments and higher travel receipts. The ringgit appreciated by 5.1% against the US dollar in the second quarter, driven by expectations of more subdued US economic growth, rising uncertainties over US trade policies, and growing concerns over its fiscal sustainability [4].

The financial account recorded a smaller net outflow of RM2.2 billion in the second quarter compared to the previous quarter, primarily driven by interbank activities with financial institutions abroad. Foreign direct investment saw a much smaller net inflow of RM1.6 billion in the second quarter compared to the first quarter, with sustained equity injections and inflows in debt instruments partially offset by higher income repatriation to parent companies abroad [1].

In the first quarter of 2025, Malaysia's current account surplus widened sharply to RM16.7 billion, marking the largest current account surplus since the fourth quarter of 2022. However, the secondary income deficit widened to RM17.1 billion, indicating a broader trend of widening secondary income gaps [2].

Malaysia's economy expanded steadily in the second quarter of 2025, with the main growth engine remaining robust. The jobless rate stayed at an over 10-year low, and construction output rose the least in six quarters. Retail sales climbed 5.4% in June, indicating a resilient consumer market [2].

In conclusion, while Malaysia's current account surplus narrowed in the second quarter of 2025, the overall economic outlook remains positive, with projections of a stable surplus in 2025. The operationalization of data centre investments and higher travel receipts are expected to drive export growth in the long term.

References:
[1] https://theedgemalaysia.com/node/766711
[2] https://tradingeconomics.com/malaysia/current-account
[3] https://www.malaymail.com/news/money/2025/08/15/bank-negara-to-issue-open-finance-draft-soon-eyes-policy-rollout-next-year-says-governor/187729
[4] https://www.freemalaysiatoday.com/category/nation/2025/08/15/bnm-maintains-gdp-projection-of-4-4-8