KUALA LUMPUR, March 21 — Bank Negara Malaysia (BNM) has forecast Malaysia’s economy to grow between 4.5 and 5.5 per cent in 2025, driven by sustained domestic demand despite heightened external uncertainties that could moderate export growth.
In its annual Economic and Monetary Review 2024 and Financial Stability Review for the second half of 2024 released today, BNM noted that headline inflation and core inflation in 2025 are expected to average between two and 3.5 per cent, and 1.5 and 2.5 per cent, respectively.
Inflation is projected to trend higher but remain manageable amid easing global costs and the absence of excessive demand pressures. Domestic monetary and financial conditions are expected to remain supportive of financing needs amid sustained economic expansion, with credit demand driven by positive domestic growth and income prospects.
“While uncertainties remain on the global horizon, BNM will continue to faithfully discharge our mandate and build the trust of the rakyat. Our diversified economic structure and a wide array of policy tools will accord us the resilience and agility to navigate these headwinds,” said BNM governor Datuk Seri Abdul Rasheed Ghaffour.
“We are confident that the Malaysian economy will remain on a steady growth path, with inflationary pressures to remain broadly manageable. With favourable domestic conditions expected, Malaysia should continue its pursuit of key structural reforms to ensure sustainable growth for the years to come,” he added.
Malaysia’s economy grew by 5.1 per cent in 2024 with a moderate inflation of 1.8 per cent while the inggit ended 2.7 per cent higher against the US dollar and 7.5 per cent higher against its major trading partners.
BNM noted that Malaysia’s financial markets will remain resilient and following its mid-term review of the financial sector blueprint 2022-2026 is in line to keep pace with upcoming trends and challenges.
“The digital financial landscape continues to evolve rapidly. Businesses and consumers are increasingly embracing digital payments. E-payment transactions grew by 19 per cent to 409 transactions per capita, translating to at least one e-payment per Malaysian per day.
However, cash remains a vital component of the payment ecosystem,” said Abdul Rasheed.
In efforts to combat financial scams, BNM, in collaboration with PayNet and financial institutions, launched the National Fraud Portal (NFP) in September 2024. This initiative has reduced the time taken by financial institutions to identify fraudulent transactions by 75 per cent and increased the detection of mule accounts by 65 per cent.
Additionally, BNM introduced a policy on Fair Treatment for Victims of Unauthorised e-Banking Transactions, aiming for a balanced approach between consumer protection and financial institution responsibilities.
“As audited and certified by the Auditor General, the financial position of BNM remained healthy in 2024. Total assets amounted to RM621.54 billion as at 31 December 2024.
“A net profit after tax of RM13.16 billion was recorded for the financial year, of which RM7.91 billion has been transferred into BNM’s RiskReserve. BNM has declared a dividend of RM5.25 billion to the government for the financial year 2024,” said Abdul Rasheed.
