Malaysia’s economy expanded at a slower-than-expected pace in Q1, dragged down by weaker growth in manufacturing and construction even before the US announced plans for punishing tariffs. Gross domestic product (GDP) rose 4.4% in the January-March period from a year earlier, according to advance estimates from the statistics department today. That’s below the 4.8% median estimate in a Bloomberg News survey and marks a third straight quarter of slower growth. The disappointing data comes as policymakers review the official 4.5%-5.5% growth forecast for 2025 on uncertainty over global trade. Malaysia was hit with a 24% US import tariff before President Donald Trump temporarily pared it back to 10% for 90 days while hiking levies for China. The services industry remained the main driver of growth in Q1, expanding by 5.2%, according to a statement from the agency, which described the economy’s overall performance in positive terms. “Malaysia’s GDP growth held firm amid persistent global headwinds, underpinned by resilient domestic fundamentals,” chief statistician Uzir Mahidin said in a statement. But the pace of services growth was also slower than in the previous quarter, and analysts are increasingly betting that Bank Negara Malaysia (BNM) may cut rates to stimulate growth, even as the central bank said it would look beyond monetary policy to deal with the tariff fallout. BNM is likely to hold rates unless growth falls toward 3%” in the second half of the year, which would increase the case for easing, according to an April 14 report from Kenanga Investment Bank Bhd. The central bank last adjusted borrowing costs in May 2023, with a 25-basis-point hike. Among Southeast Asian neighbours, the Philippines cut rates by 25 basis points on April 10 and Singapore, which uses the exchange rate as its main policy tool, eased its monetary policy settings on April 14. Both central banks noted uncertainties over world trade. (ICE KUALA LUMPUR)

Fonte notizia: 22 aprile 2025, Kuala Lumpur