In a recent study, RHB Research has predicted that the Malaysian economy will only grow by 4.5% in 2025 – slower than the 5.2% this year.
If the economic situation becomes more tense, Malaysia may grow as low as 4%!
According to RHB, even though a major tariff war only involves China and the US, Malaysia will not be able to escape its grip as it will affect the rejection of 0.7% of the country’s GDP.
And that’s not even including the impact of tariffs on ourselves!
The trade and manufacturing sectors are expected to be most affected starting in the second quarter of 2025.
RHB also warned that Bank Negara may cut the overnight policy rate (OPR) by 25 basis points if growth is too weak.
Worse, the FBM KLCI target for the end of 2025 has also been lowered from 1,750 to 1,650 points.
If all the indicators are warning – are we still ready?
And when the economy slows down… who will really be ‘hit’? The people? Investors? Or all of them at once?
