Multitude Of Positive Factors Entrench Malaysia's Economy On Growth Trajectory
By Karina Imran
KUALA LUMPUR, July 28 (Bernama) -- Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour has expressed optimism that Malaysia's economy remains on a strong growth trajectory due to multiple factors, such as resilient domestic demand and encouraging exports of electrical and electronic (E&E) products, despite headwinds from impending tariffs.
The central bank governor said today that among the combination of positive factors supporting the economy are the frontloading of exports in the first six months, robust tourism activity that could raise Malaysia's export prospects, low unemployment and rising wages.
Moreover, he highlighted that about 85 per cent of Malaysia's exports go to markets other than the United States (US).
While uncertainties remain, particularly surrounding the final shape and scale of the US tariffs, BNM's revised growth forecast of 4.0 per cent to 4.8 per cent has taken into account multiple scenarios, including potential trade disruptions.
'We have accounted for a range of tariff scenarios, including both favourable and less unfavourable trade negotiations outcomes as well as pro-growth policies in major economies.
'A diversified export structure will help contain the direct effect from the US, as around 85 per cent of exports are to non-US markets, and no single market accounts for more than 15 per cent of Malaysia's exports,' he told Bernama in an exclusive interview.
Abdul Rasheed noted that Malaysia's exports are spread across a wide range of products, consisting of E&E (40 per cent), non-E&E manufacturing goods (46 per cent) and commodities (14 per cent).
He said almost half of the demand for Malaysian exports comes from Advanced Asia (19.4 per cent) and ASEAN countries (29 per cent).
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