Malaysia's Economy Grows 5% in Q4 2024 Amid Challenges

Malaysia's economy demonstrated resilience with a 5.0% growth in Q4 2024, contributing to an annual expansion of 5.1%, despite facing challenges from the commodities sector and global trade slowdowns. Analysts attribute this performance to robust domestic demand, low inflation at 1.8%, and strong consumer spending, supported by an unemployment rate of 3.1%. The central bank, Bank Negara Malaysia, maintained its key interest rate at 3% to foster economic stability, although it noted potential currency volatility and external pressures. Looking forward, growth in 2025 is projected to moderate to around 4.6%, influenced by external trade tensions and rising costs. Economists caution about the impact of U.S. tariffs and a slower global demand, particularly from China, which could hinder export growth. Overall, while Malaysia's economic outlook remains positive, strategic policy measures will be essential to navigate the anticipated challenges ahead.