BMI, part of Fitch Solutions, has lowered Malaysia’s 2025 GDP growth forecast from 5.0% to 4.2%, citing weaker exports and cooling investment due to US tariffs and global uncertainty. The new forecast is below the government’s 4.5%–5.5% target. Export momentum—especially in semiconductors—is expected to fade, while the construction sector is also slowing. BMI says domestic demand will be key to driving growth going forward.
