2Q 2025 GDP likely to grow 4.5–5.5% amid tariff rush
Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said the service, manufacturing and construction sectors are likely to contribute the most to 2Q 2025 growth.
'I expect Malaysia's 2Q gross domestic product (GDP) to show growth. There is also a possibility that the mining and agriculture sectors would make a higher contribution to the economy,' he told Bernama.
The Statistics Department Malaysia (DOSM) is scheduled to announce the advance GDP estimates for 2Q 2025 on Friday, July 18, followed by an Aug 15, 2025 official announcement.
However, Ahmed Razman cautioned that the growth momentum could decelerate in the second half of the year (2H 2025) once the US tariff comes into effect.
Nevertheless, the recent reduction of the overnight policy rate (OPR) might catalyse the domestic market to generate higher demand for products and services, he said.
On July 9, Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) reduced the OPR by 25 basis points to 2.75 per cent, a pre-emptive measure to preserve Malaysia's steady growth path amid moderate inflation prospects.
BNM last kept the OPR at 2.75 per cent in March 2023. It was increased to three per cent in May 2023.
Sharing similar views, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said front-loading activities may benefit Malaysia's external sector.
'We have seen exports to the US jump 33.6 per cent in the first five months of 2025.
'This will sustain growth in 2Q 2025 along with Malaysia's full employment status, which will help propel consumer spending, coupled with investment activities in the private sector,' he said.
However, Mohd Afzanizam expressed concern that the 2H 2025 economic conditions will be more critical with the US tariff effective Aug 1, 2025.
'We can expect US demand to moderate as Americans will have to pay more for imported goods.
'The growth moderation will be transmitted in the 2H 2025,' he said.
Mohd Afzanizam expects 2025 full-year growth to slow to 4.1 per cent against BNM's earlier growth projection of between 4.5 and 5.5 per cent and 2H 2025 GDP to expand to 3.7 per cent.
On July 8, the US unexpectedly imposed a higher tariff of 25 per cent on all Malaysian exports effective Aug 1, 2025, one per cent higher than the 24 per cent announced in April 2025.
While negotiations for lower tariffs are ongoing between Malaysia and the world's largest economy, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said BNM is currently analysing this year's economic outlook and the tariff impact, and the official economic outlook remains unchanged. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysian Reserve
4 hours ago
- Malaysian Reserve
Polymarket Acquires CFTC-Licensed Exchange and Clearinghouse QCEX for $112 Million
Acquisition Paves Way for U.S. Re-Entry with Fully Regulated Trading Platform NEW YORK, July 21, 2025 /PRNewswire/ — Polymarket, the world's largest prediction market, today announced that it has closed an acquisition of the holding company of a Commodity Futures Trading Commission-licensed derivatives exchange (QCX, LLC) and clearinghouse (QC Clearing LLC) (collectively "QCEX") for $112 million. The transaction marks a significant step toward expanding access to Polymarket's category-defining platform in the United States, enabling more users than ever to trade prediction market contracts with regulatory clarity and confidence. "Polymarket is the largest prediction market globally and has become synonymous with understanding the probability of current events," said Shayne Coplan, Founder and CEO of Polymarket. "Demand is greater than ever — not just in user growth and trading volume, but in how mainstream audiences are turning to Polymarket to separate signal from noise, bias, and speculation. "Now, with the acquisition of QCEX, we are laying the foundation to bring Polymarket home — re-entering the US as a fully regulated and compliant platform that will allow Americans to trade their opinions." "When we began the process to obtain our DCM & DCO licenses over 4 years ago, the prediction market was in its infancy. But we have long believed in its potential to change the way people access and understand information and express their views on that information," said Sergei Dobrovolskii, Founder of QCEX. "Shayne has built a cultural phenomenon in Polymarket. I am excited to bring our companies together and leverage our licenses, technology, and expertise in the retail trading sector to help Polymarket reach its full potential." Polymarket has continued to build significant momentum as the world's largest prediction market and a trusted source of real-time information. In the first half of 2025 alone, users have already made about $6 billion in predictions on the platform. Most recently, Polymarket announced an official partnership with 𝕏, further solidifying its position at the intersection of politics, markets, and culture. The acquisition of the QCEX entities paves the way for U.S. users to access Polymarket in the near future within a fully regulated, U.S.-compliant framework. As prediction markets continue to gain mainstream relevance, Polymarket remains the go-to platform for understanding what the world is thinking — and where it's headed. To explore live markets and stay ahead of the curve, visit About Polymarket Polymarket is the world's largest prediction market. On Polymarket, traders predict the outcome of future events and win when they are right. As traders react to breaking news in real-time, market prices are the best gauge of the likelihood of events occurring. Institutions, individuals, and the media rely on these forecasts to report the news and better understand the future. Across politics, current events, pop culture, and more, billions of dollars of predictions have been made so far on Polymarket in 2025. Contact press@
The Sun
5 hours ago
- The Sun
Johor Bahru bus drivers strike disrupts Singapore commute
JOHOR BAHRU: Private employee Saiful Umar, 37, was among thousands caught off guard when around 100 Malaysian bus drivers operating to Singapore suddenly went on strike early this morning at the Sultan Iskandar Building (BSI). 'I was shocked, there was no information at all (on a strike),' he said. Passengers arriving as early as 5 am found no bus services, forcing some to walk one to two kilometres across the Johor Causeway to reach workplaces in Singapore. Saiful, who had to walk nearly two kilometres to Woodlands before getting a ride back to Tampoi, expressed frustration over the lack of prior notice. 'This situation is not only inconvenient but also affects our work and image,' he told Bernama. A viral video showed crowds at BSI at 5.30 am due to the halted bus services. Reports suggest the strike stemmed from drivers' dissatisfaction over salary adjustments and allowance cuts, allegedly reducing their monthly pay from RM2,800-RM2,900 to below RM2,000. Another passenger, K. Ramesh, 40, called the situation 'ridiculous,' urging the bus company to resolve the issue swiftly. 'This affects our daily routine and careers,' he said. Bus driver Atoi, 35, confirmed about 100 drivers began striking at 5 am in protest. By evening, services resumed, with no further disruptions observed. Johor Public Works Committee chairman Mohamad Fazli Mohamad Salleh confirmed the incident, having monitored operations with Singapore's LTA and bus operators earlier. – Bernama
The Sun
5 hours ago
- The Sun
Sarawak unity drives sustainable growth towards 2030 vision
KUCHING: The unity of Sarawak's diverse communities remains the cornerstone of the state's progress as it advances towards becoming a high-income and developed region by 2030, said Premier Tan Sri Abang Johari Tun Openg. Marking Sarawak Day 2025 under the theme 'Sarawak Maju Makmur' (Progressive and Prosperous Sarawak), he emphasised the state's commitment to inclusive growth through the Post-COVID-19 Development Strategy (PCDS) 2030. 'The Sarawak government will continue implementing PCDS 2030 to ensure socio-economic prosperity for all,' he stated in a Facebook post by the Office of the Premier. The Premier also outlined key focus areas, including digital economy expansion, AI adoption, and sustainable environmental practices. Sectors like oil and gas, plantations, tourism, and modern agriculture will receive accelerated development to bolster economic resilience. Education remains a priority, with free higher education in selected fields at state-owned universities starting next year. 'This initiative allows students to focus on their studies while easing financial burdens on families,' he added. Abang Johari reaffirmed Sarawak's dedication to safeguarding its rights under the Malaysia Agreement 1963 (MA63) and thanked organisers for ensuring a successful Sarawak Day celebration in Miri. 'May Sarawak continue to prosper and serve as Malaysia's harmony model,' he concluded. – Bernama
