MALAYSIA is likely to register economic expansion towards the top end of its official forecast this year, Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour said, as growth continues to be buoyed by robust domestic activity.
“Malaysia's economy grew by 4.7 per cent in the first nine months of this year. This is well within our forecast range of between 4.0 per cent and 4.8 per cent. In fact, for this year, we may record a growth rate that is closer to the upper range of this forecast,” he said during BNM’s recent briefing on third-quarter 2025 GDP.
According to the central bank, household spending remains supported by steady employment and rising wages, while income-support measures continue to underpin consumption.
Investment is expected to stay firm, backed by major infrastructure works, approved private-sector projects and the implementation of national master plans.
BNM cautioned that global headwinds, including softer demand and tariff pressures, may temper export performance.
Nonetheless, continued appetite for electrical and electronic products, stronger inbound tourism and a revival in mining-related exports are expected to sustain overall growth.
Meanwhile, Abdul Rasheed said the ringgit strengthened in the third quarter on the back of external monetary shifts and resilient national fundamentals.
The currency’s nominal effective exchange rate rose 0.8 per cent, lifting year-to-date gains to 5.3 per cent as of 12 November.
Against the US dollar, the ringgit held broadly steady and posted a slight appreciation, with gains amounting to 8.2 per cent.
He added that ringgit was supported by the US Federal Reserve’s decision to ease monetary policy in September, as well as expectations of further cuts amid concerns about the US economic outlook.
It added that recent trade agreements between the United States and several partners, including Malaysia, had helped ease tariff uncertainty and improved sentiment.
The Central Bank Governor said: “Malaysia’s favourable economic outlook, coupled with the government’s commitment to structural reforms and fiscal sustainability, would continue to support the currency.
“It reaffirmed its focus on ensuring orderly conditions in the domestic foreign-exchange market,” he added - November 14, 2025
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