CIMB revises 2025 GDP forecast to 4.3% on trade easing, stronger US ties
In a note, it said that although this represents an improvement, it still falls short of the government's 4.5-5.5 per cent target, reflecting a more cautious view on the recovery in external demand and domestic momentum.
"Along with benign inflation (Jan-April 2025: 1.5 per cent year-on-year), this allows Bank Negara Malaysia (BNM) room to cut the overnight policy rate (OPR) to 2.75 per cent in the third quarter of 2025,' it said.
Meanwhile, Kenanga Investment Bank Bhd (Kenanga IB) is maintaining its 2025 GDP growth forecast for Malaysia at 4.3 per cent, as domestic demand and the services sector are expected to stay resilient despite global economic uncertainty.
However, it said persistent weakness in the commodity-related sector will continue to weigh on growth momentum.
On export, the investment bank noted that exports grew 5.5 per cent in the first five months of this year, ahead of the full-year forecast.
"Although May's export data was underwhelming, we expect the dip to be short-lived with a likely rebound in June. However, growth is expected to remain volatile in the near term due to the July reciprocal tariff deadline,' it said.
Nevertheless, Kenanga IB see continued support from the global tech upcycle, driven by artificial intelligence-related demand, new product launches, and Malaysia's export diversification. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
22 minutes ago
- New Straits Times
Govt to consider raising I-BAP allocation following overwhelming response
KUALA LUMPUR: The government will consider raising the allocation for the Business Accelerator for Indian-owned companies (I-BAP) to RM10 million in the upcoming Budget following overwhelming response since its launch in October last year. Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R. Ramanan said RM5.13 million from the RM6 million allocation this year has been approved and will be channelled to recipients, while the remaining RM800,000 is being processed for distribution, and noted that new applications have reached RM2 million, pushing total applications beyond RM8 million. "Based on discussions with Minister (Datuk Ewon Benedick) and SME Corporation Malaysia (SME Corp) chief executive Rizal Nainy, we will carry the suggestion to raise allocations to RM10 million in the upcoming Budget. "If applications rise to RM14 million or RM15 million next year, the government will suggest an additional allocation of RM20 million the following year," he told reporters after attending the handing-over of offer letters to I-BAP recipients here today, where 31 companies received grant offers between RM7,000 to RM100,000. He also shared the latest suggestion of raising the rate of matching grants from 50:50 to 70:30, and expanding the scope of use for the grants for purchasing raw materials and premises rental payments. "This was suggested by Rizal and will help reduce operation costs for small entrepreneurs and will give them room to focus on growth and innovation," Ramanan said. Meanwhile, I-BAP recipient Chocofac (Malaysia) Sdn Bhd chief executive officer (CEO) A Micheal Dass said that it was the second time his company had applied for the grants and praised the improvements made to the application process, which he described as being simpler and more inclusive. "Previously it was rather complicated, now it's very easy to apply. "The aid will help us improve our product and raise sales. SME Corp has also helped us a lot, including shipping subsidies for cross-border business transactions," he said. Fellow recipient, MindAppz E-Tuition CEO K Thinesh Kumar said that I-BAP not only helped strengthen the small and medium enterprises, but also made a huge impact on education technology companies that introduce artificial intelligence (AI) based learning systems. Finally, Rizal during his speech shared that SME Corp would be organising SME Venture@ASEAN 2025 in conjunction with Malaysia being Asean Chair, from Oct 16 to 18 at the Malaysian International Trade and Exhibition Centre (Mitec), which will be officiated by Prime Minister Datuk Seri Anwar Ibrahim. – Bernama
Free Malaysia Today
an hour ago
- Free Malaysia Today
Johor homestay operator settles RM70,000 piracy case with Astro
Astro's chief sales and marketing officer Tai Kam Leong said the case highlighted the spread of content piracy. (File pic) PETALING JAYA : A Johor-based homestay operator has reached a RM70,000 settlement with Astro Malaysia Holdings Bhd over the illegal streaming of the broadcaster's content. In a statement, Astro said this was the first time its subsidiary Measat Broadcast Systems Sdn Bhd had resolved a piracy case involving a short-term rental business. Astro's chief sales and marketing officer Tai Kam Leong said the case highlighted the spread of content piracy. 'Whether it's a hotel, café or short-term rental, those in the hospitality sector must understand using TV boxes to stream content without a commercial licence is unlawful and undermines the creative economy,' he said. In November 2022, the Kuala Lumpur High Court ruled that broadcasting content from unauthorised sources for commercial use without the proper licence was illegal. The homestay operator, registered as The Cactus X Empire, was found to have used unauthorised streaming devices to broadcast Astro channels at rental units in Iskandar Puteri and Johor Bahru without a commercial subscription. Under the settlement, it agreed to pay RM46,000 in damages and legal costs, subscribe to five AstroBIZone commercial packages valued at RM24,000 for at least 12 months and issue a formal apology on its official Facebook page. The apology posted on the Cactus Homestay JB Facebook page acknowledged the infringement and urged others in the hospitality industry to use only licensed sources for entertainment content. 'We unequivocally condemn all forms of piracy and affirm our commitment to respecting Astro's intellectual property rights now and in the future. We are grateful to Astro for allowing us the opportunity to rectify our actions,' said the operator. In January, Measat was awarded RM175,000 in another case involving the unauthorised streaming of its premium content. The same High Court ruled in favour of Measat on Jan 7, after Frenz Pool Café and Tuwang 69 Sdn Bhd were found to have streamed an English Premier League match without permission. The court also issued a permanent injunction against the two companies, barring them from further unauthorised use of Astro's content.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Local councils owe SWCorp nearly RM500mil for cleaning services, says MP
DAP MP Howard Lee said the debts stem from a 2011 arrangement under which the federal government took over waste services in several states. KUALA LUMPUR : Local councils owe nearly half a billion ringgit to Solid Waste Management and Public Cleansing Corporation (SWCorp) for rubbish collection and street cleaning services, according to Howard Lee (PH-Ipoh Timur). Lee said RM493 million in unpaid waste management fees is owed to SWCorp, a federal agency under the housing and local government ministry that manages domestic rubbish collection and public cleaning in states that have adopted the national waste system. Presently, Kuala Lumpur, Putrajaya, Johor, Melaka, Negeri Sembilan, Pahang, Kedah and Perlis have signed on with SWCorp. 'Rubbish has been picked up, the streets cleaned but the money never came,' he told the Dewan Rakyat in debating the 13th Malaysia Plan. Lee, who sits on SWCorp's board, said the debts stem from a 2011 arrangement under which the federal government took over waste services in several states. He said local councils were expected to make yearly contributions into a fund managed by SWCorp, but their failure to pay is now hurting payments to waste contractors. He urged the federal government to instruct local councils to raise their monthly instalments to slowly pay off the arrears. As for those who still couldn't afford it, Lee suggested that their respective state governments step in to help. He also suggested that Putrajaya should allow struggling councils to apply for soft loans, sell physical assets to raise money, and start budgeting repayments in full as part of their 2026 budgets. This year alone, the federal government had stepped in to assist, giving out RM8 million in grants to eight councils to help with repayments. Lee said to ensure full compliance, the ministry should impose penalties on councils that refuse to pay up. Strict licensing rules limiting trained eldercare workers Lee also raised concerns about the country's preparedness to care for its growing elderly population, noting that strict licensing rules have made it difficult for care centres to accept student trainees from the national skills training programme. He added that many centres lack the necessary licences from welfare or health authorities, contributing to a shortage of trained eldercare workers. To address this, Lee proposed that the government allow these centres to accept interns without requiring full licences, provided they meet minimum standards set by a professional care group. 'We have so many elderly people waiting to have their diapers changed, but we're stuck with the issue of licensing. 'It doesn't match the urgency on the ground,' he said.
