Malaysia

Malaysia braces for tougher economic climate as global tariff war looms, says economy minister

Malaysia will face a more challenging economic environment this year as the impact of the U.S. tariff war and geopolitical tensions begins to weigh on global growth, Economy Minister says

Updated 9 months ago · Published on 06 Jan 2026 9:34AM

Malaysia braces for tougher economic climate as global tariff war looms, says economy minister
Akmal says the macroeconomic growth figures for Malaysia are good based on key domestic indicators which remain strong - January 6, 2025

THE nation’s economic outlook this year is expected to be more challenging as global uncertainties intensify, with the country beginning to feel the effects of the United States’ tariff war and ongoing geopolitical tensions, Economy Minister Akmal Nasrullah Mohd Nasir said.

In a Facebook post, Akmal said the external pressures would contribute to economic volatility worldwide, with potential implications for Malaysia’s growth trajectory.

“The economic situation this year will be more challenging,” he said, citing the impact of the US tariff war and geopolitical strains that are weighing on the global economy.

He stressed, however, that Malaysia’s domestic fundamentals remain resilient.

“But don’t get me wrong: the macroeconomic growth figures for Malaysia are good.

“GDP growth expanded by 5.2% in the third quarter of 2025, inflation has remained low at below 2% for 30 consecutive months, and the unemployment rate has continued to decline to 3% over a three-year period,” he said.

Akmal said the government would outline its economic priorities and strategic direction for 2026 at the upcoming Malaysia Economic Forum.

He added that preparations for the forum would begin in early February, underscoring the importance of setting clear priorities early in the year.

“Arranging our priorities to determine the economic direction for the first few weeks of 2026 is extremely important. I will devote time and focus on the following matters,” he said.

The Economy Ministry, he said, has scheduled 25 briefing sessions that will be followed by in-depth discussions on policy formulation and the implementation of the nation’s economic direction.

In addition, the government will engage with a wide range of stakeholders and parties with strategic interests to the country as it shapes its economic plans amid an increasingly uncertain global environment.  - January 6, 2025

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