KUALA LUMPUR : Malaysia’s economy grew 4.4 per cent in the first quarter of 2025 from a year earlier and the country’s exports to the United States surged in March, data showed on Friday, as authorities warned that U.S. tariffs were creating uncertainty.
The official advance GDP estimates showed the economy slowing from growth of 5 per cent in the final quarter of 2024, with the statistics department saying domestic activity and demand had underpinned growth. Final first-quarter data is due on May 16.
“Malaysia’s GDP growth held firm amid persistent global headwinds, underpinned by resilient domestic fundamentals,” Chief Statistician Mohd Uzir Mahidin said.
He said strength in retail and wholesale trade, a good jobs market and improved demand for key exports had helped buffer the economy against global challenges.
Separate data showed a stronger-than-expected 6.8 per cent annual rise in exports in March, with shipments to the United States rising by 50.8 per cent to a record 22.66 billion ringgit ($5.14 billion).
In early April, U.S. President Donald Trump announced a global round of import tariffs, most of which have been delayed until July. Malaysia, which is facing a 24 per cent tariff rate, is sending a delegation next week to meet U.S. officials for talks.
The trade ministry said despite the global trade war the central bank had maintained its forecast for GDP growth this year at 4.5 per cent to 5.5 per cent, and said export growth was seen at 5.2 per cent.
“Moving forward, however, there is a need for caution given the uncertainties of global demands, which may temper growth in investments and domestic demand,” the ministry said.
“As a small, open trading nation, Malaysia is inevitably exposed to heightened external uncertainties in the global trading landscape.”
($1 = 4.4060 ringgit)
