Latest news with #Firdaos


The Sun
17-07-2025
- Business
- The Sun
Bank Negara likely to maintain OPR at 2.75% for rest of year: AmBank chief economist
KUALA LUMPUR: AmBank Group expects Bank Negara Malaysia (BNM) to maintain the Overnight Policy Rate (OPR) at 2.75% for the remainder of the year, citing current economic conditions as supportive of the existing rate. AmBank Group chief eonomist Firdaos Rosli said the current OPR level is appropriate and no adjustments are anticipated in the near term. 'We believe the current OPR of 2.75% is adequate. Given the prevailing economic landscape, we do not foresee any changes in the coming months. It is likely to remain unchanged through the end of 2025,' he told reporters at the National Economic Forum 2025 today. However, Firdaos cautioned that the outlook for 2026 may differ, depending on external developments. 'There is still considerable uncertainty surrounding economic conditions in the United States and other key markets. The situation could evolve in ways that impact our projections,' he noted. On Malaysia's economic performance, Firdaos said that second-quarter gross domestic product (GDP) growth may moderate slightly to the lower end of the 4% range, following a decline in the Industrial Production Index (IPI). Malaysia's IPI grew by just 0.3% year-on-year in May, a notable slowdown from the 2.7% expansion recorded in April. 'Given the slowdown in industrial output, GDP growth for Q2 could come in closer to 4%, although still within the targeted range. External trade has remained relatively resilient, which supports overall performance,' he said. He attributed this resilience to front-loading activities, particularly among exporters shipping goods to the United States and other international markets ahead of potential trade disruptions. Firdaos pointed out that the strong 4.4% GDP growth recorded in the first quarter was likely boosted by early festive spending, some of which carried into the second quarter. 'Consumer spending has remained stable, especially with the Hari Raya period falling within the quarter,' he said. AmBank's full-year GDP forecast stands at 3.8%, slightly below the World Bank's projection of 3.9%. 'We are anticipating a general economic slowdown, primarily driven by external headwinds. Consumer and investment confidence remain somewhat subdued, and we expect this trend to continue in the near term,' Firdaos said. While not attributing the slowdown to any specific policy or shock, he emphasised the broader sentiment-driven nature of the deceleration. 'It's a general, broad-based slowdown – not due to any one specific factor such as tariffs – but rather an accumulation of uncertainty in the external environment,' he said. Tariffs, however, remain a key area of concern. 'In my view, tariffs continue to pose a significant uncertainty in the global trade landscape. The United States is taking a bilateral approach, and it's still unclear how other Asean countries will be treated under this policy direction,' he said. Firdaos noted that countries such as Vietnam and Indonesia have already received official communication from the US, while Singapore has not. Malaysia, he said, has also received such correspondence, with negotiations ongoing and expected to continue until August. 'There is a possibility that the negotiation deadline could be extended, which keeps sentiment cautious among businesses and investors,' he added. In light of this uncertainty, Firdaos said, companies may accelerate trade activities to hedge against potential tariff hikes. 'This cautious sentiment is a key reason behind the expected slowdown. Businesses and consumers are taking a more conservative stance amid unresolved global issues.'

Barnama
17-07-2025
- Business
- Barnama
AmBank Group Projects Moderate Four Pct Malaysia GDP Growth For 2Q 2025
BUSINESS KUALA LUMPUR, July 17 (Bernama) -- AMMB Holdings Bhd (AmBank Group) expects Malaysia's gross domestic product (GDP) to grow at a moderate rate of around four per cent year-on-year in the second quarter of 2025 (2Q 2025), supported by continued front-loading activities that benefit the external sector. Its chief economist Firdaos Rosli said the growth momentum seen in 1Q 2025 is likely to ease in 2Q due to weaker industrial output. 'We think 2Q GDP will ease slightly, mainly due to the softer industrial production index (IPI). But, overall growth should remain in the low four per cent range,' he told reporters after speaking as a panellist at the National Economic Forum 2025 today. Firdaos added that the strong 1Q performance was likely driven by early economic activity, but external challenges are expected to weigh on the subsequent quarter. For the full year, the bank projects GDP growth at 3.8 per cent, which is slightly below the World Bank's forecast of 3.9 per cent, as weaker consumer and investment confidence continue to affect overall economic momentum, reflecting broader signs of a slowdown. 'Tariff uncertainties remain a key concern, particularly given the bilateral nature of trade decisions in the United States,' he said. The Department of Statistics Malaysia is scheduled to announce the advance GDP estimates for 2Q 2025 tomorrow, followed by an official announcement on Aug 15, 2025. On the overnight policy rate (OPR), Firdaos said AmBank expects it to remain at 2.75 per cent until the end of the year. 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.

Barnama
17-07-2025
- Business
- Barnama
Long-Term Structural Reforms Needed To Address Cost Of Living
BUSINESS KUALA LUMPUR, July 17 (Bernama) -- The government should adopt more holistic and forward-looking reforms to manage the rising cost of living, beyond short-term fiscal support, said AmBank Group chief economist Firdaos Rosli. He noted that cash transfers remain an effective short-term measure which could immediately bring down the cost of living. 'They work and they are easy to implement. But these are short-term fixes. To build long-term resilience, we need sustainable economic strategies,' he told reporters after participating as a panelist at the National Economic Forum 2025 today. Firdaos said three key structural priorities for the government to consider as it seeks to ease the cost of living while driving growth, are deregulation, dynamic investment incentives and decentralisation. He said deregulating selected industries could boost national productivity and reduce bureaucratic barriers for businesses and this includes simplifying land and equity-related processes, as well as streamlining business procedures to make Malaysia a more competitive investment destination. While Malaysia already offers various investment incentives, Firdaos said the government must continuously assess the situation to remain competitive. 'If our neighbouring countries offer the same incentives, what makes us stand out. Our incentives must be dynamic and aligned with global economic trends,' he said. Firdaos also stated the need for decentralisation of certain administrative functions to speed up industrial development. Citing the Kulim Industrial Park as an example, he said faster processing of permits and infrastructure support at the local level can help attract more investments.