HSBC raises Malaysia's GDP rise expectations

On January 7th, the strong rise momentum in Malaysia has led economists at HSBC to raise the country’s GDP growth forecast for 2025 from the previous 4.6% to 4.8%. However, the potential imposition of tariffs on Malaysia’s semiconductor industry by the United States is a negative factor. According to recent data, economists have also revised down the inflation expectations for 2024 and 2025 to 1.9% and 2.7% respectively, but uncertainty remains surrounding the reform of the RON95 fuel subsidy. HSBC expects the Central Bank of Malaysia to maintain a 3% interest rate policy and continue to focus on following the inflation trend based on data.