Putrajaya may revise Malaysia’s 2025 gross domestic product (GDP) growth projection depending on the outcome of the ongoing US tariff situation, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Speaking to reporters on the sidelines of the 12th Asean Finance Ministers and Central Bank Governors Meeting on Monday (April 7), Amir Hamzah said Bank Negara Malaysia will analyse the relevant data before any adjustments are made.
He added that discussions with the United States are ongoing and that Malaysia will continue working with regional partners to explore joint strategies, including diversification, to mitigate the impact.
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Speaking to reporters on the sidelines of the 12th Asean Finance Ministers and Central Bank Governors Meeting on Monday (April 7), Amir Hamzah said Bank Negara Malaysia will analyse the relevant data before any adjustments are made.
He added that discussions with the United States are ongoing and that Malaysia will continue working with regional partners to explore joint strategies, including diversification, to mitigate the impact.
Read more at https://tinyurl.com/2w7dwt75
WATCH MORE: https://thestartv.com/c/news
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NewsTranscript
00:00What financial measures is Malaysia planning to deal with the tariffs?
00:15I think PM has made it quite clear that this one is something that we should take our time
00:21to analyse and to see how we react.
00:24So from a government point of view, we set up a special committee headed by PM and then
00:29we will look at the impacts and what we need to do to support as necessary, but more importantly
00:35working together also with our ASEAN partners to see how we can build resilience within
00:41the system.
00:42We have to also recognise that we will have to engage.
00:45We have to engage to see how we can get to a better outcome.
00:48So I think that's the objective and MITI is taking the lead in terms of approaches
00:53of how we deal with the US in this instance.
00:55What is the plan to do once the GDP?
00:57I think Bank Negara and so on are looking at the data today.
01:02Again, as you are all aware, the tariff announcement was last week.
01:08At the moment, it's also the first salvo that actually went out.
01:11So as we go in, we talk, we discuss, this may change.
01:16As the outcomes change, I think the GDP also will be re-established based on what's the
01:21final outcome.
01:22One should not be too quick to take decisions and do rash things along the way.
01:27Again, the difference again for Malaysia is I think we have to be realistic, we have to
01:33be realistic.
01:34This is a challenging environment for the globe, but practical minds, calm minds will
01:39actually help us pave the way forward that we will get to a better state.
01:44Is 5% still achievable in 2025 for the Malaysian economy and will you use ringgit devaluation
01:51as a tool to face Trump's tariff?
01:54I think the reality is, as I said earlier, we are looking at what the final outcome will be.
02:01If the final outcome is going to be a lot more challenging, then like any normal country,
02:08we will address the growth estimates for the future.
02:12But for the moment, we are still working through the analysis and we're still working through
02:16in discussions with the US and also with our regional partners in terms of looking
02:20at diversification, looking at things that we can do together to build a better face forward.
02:26And when that's addressed, then I think we will adjust the growth, whether positive or
02:31negative accordingly.
02:32Ringgit, I think Malaysia has always had an open economy and the objective of Benegara
02:39is to keep a stable market, so that there is price stability in the market and we can
02:44manage that portion.
02:46And we've seen volatility before, but ultimately a stable, predictable environment allows trade
02:51to prosper in a better form.
02:52I think that's what our focus at this point in time.
02:54In previous expectations, you were expecting appreciation for ringgit in 2025 to be like
02:59a three against dollar, but there's now a big change after Trump's tariff.
03:06So any range you're expecting for 2025?
03:08I think the reality, I don't think anybody made a projection that it's going to be three
03:11or whatever it is.
03:13Again, the key mandate for Benegara is to keep...
03:15On the previous Bloomberg interviews?
03:17No, no.
03:18At the end of the day, the key mandate of Benegara is to provide price stability in
03:22the market, to provide an environment where businesses can operate.
03:26And I think that will continue to be Benegara's mandate and it will operate along that line.
03:30Alright, thank you.