Malaysia's economy projected to grow 4pc to 4.8pc this year

KUALA LUMPUR (Reuters) - Malaysia's economy is projected to expand by 4pc to 4.8pc in 2025, down from a previous forecast of 4.5pc to 5.5pc, its central bank said on Monday, warning that trade and tariff uncertainties could affect global growth.

Headline inflation is expected to average between 1.5pc and 2.3pc this year, Bank Negara Malaysia said in a statement.

The central bank said the global economic growth outlook was affected by shifting trade policies and uncertainties surrounding tariffs.

It said Malaysia's "updated growth projections account for various tariff scenarios, ranging from a continued elevation of tariffs to more favourable trade negotiation outcomes."

Although Malaysia's economy remains on a "strong footing", the central bank said its growth projection remains subject to uncertainties surrounding the global economy.

Malaysia is facing a 25pc tariff on its exports to the United States unless it can reach a deal with Washington by August 1.

Malaysia's trade minister said several sticking points remained in the talks with the United States, particularly on non-trade barriers, but discussions were progressing well and were on track to meet the August deadline.