THE Ministry of Investment, Trade, and Industry (MITI) is aiming for a five per cent growth in Malaysia’s total trade in 2025, reaching an estimated RM2.879 trillion compared to 2024.
Minister Tengku Datuk Seri Zafrul Abdul Aziz shared that while the target represents a solid growth rate, potential trade disruptions such as new tariffs from the United States or additional measures from other countries could affect the forecast.
In a statement dubbed ‘MITI Report Card 2024 & Outlook 2025’ released by the ministry today, Tengku Zafrul said: “I have to admit that when we make forecasts, we need to be adaptable.”
Speaking at a press conference following the release, he said “Forecasts need to remain flexible, just like the World Bank or the IMF, who constantly revise their GDP projections due to geopolitical and geoeconomic factors.”
Despite a slightly lower target than the 9 per cent year-on-year trade growth seen in 2024, the minister remains optimistic.
“Five per cent growth is still an increase, and we expect this to align with the country's GDP growth, which is projected to be between 4.5 and 5.5 percent,” he added.
Tengku Zafrul also provided an update on Malaysia’s free trade agreement (FTA) negotiations with the European Union (EU).
He confirmed that discussions have resumed and that concerns surrounding palm oil exports have been resolved.
“We have addressed the EU’s concerns and demonstrated that we comply with the necessary standards,” he said. However, he stressed that other issues still need to be addressed before concluding the FTA.
“Our goal is to ensure that the agreement benefits both sides. We want it to be a comprehensive deal, looking not just at traditional areas but also at digital and green sectors,” he explained. The minister expressed his aim to finalize the Malaysia-EU FTA by 2026.
Regarding Malaysia’s digital economy, Tengku Zafrul highlighted the country’s success in attracting digital investments.
As of the third quarter of 2024, approved digital investments totaled RM64.8 billion, surpassing the RM60.5 billion recorded for the full year of 2023.
“Between 2021 and the third quarter of 2024, Malaysia saw RM209.5 billion in approved digital investments, creating 4,704 job opportunities,” he noted.
A significant portion of these investments came from the data centre sector, which made up RM145.4 billion, or 69 percent, of the total.
This focus on digital infrastructure is part of Malaysia’s broader strategy to enhance its digital economy and increase its competitiveness on the global stage. – February 24, 2025
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