KUALA LUMPUR: Malaysia's central bank is taking a cautious stance as it awaits clarity on the global trade tariff situation before making any policy recommendations or revising its economic growth forecasts, announced Governor Abdul Rasheed Ghaffour on Thursday. This decision comes in the wake of ongoing trade tensions, particularly with the United States, which has imposed significant tariffs on various goods.

Currently, Malaysia faces a hefty tariff of 24% on goods exported to the United States, placing it alongside several other Southeast Asian nations grappling with substantial U.S. levies. Fortunately, U.S. President Donald Trump recently announced a 90-day pause on the implementation of these tariffs, providing a temporary respite for affected countries. Governor Abdul Rasheed emphasized the importance of gathering detailed information regarding the tariffs before the central bank can deliver more precise forecasts and assessments regarding the implications for Malaysia's economic growth this year.

At a press conference following a meeting of Southeast Asian finance ministers and central bank leaders, Abdul Rasheed conveyed, Once we have greater clarity on the details of the tariffs announcement, that's when we are able to make more robust forecasts and assessments on the impact and potential growth of the economy this year. This indicates a deliberate approach by the central bank, prioritizing informed decision-making in the face of volatility.

As it currently stands, Bank Negara Malaysia has projected economic growth for 2025 to be between 4.5% and 5.5%. However, these figures are under review due to the ongoing global uncertainties and unpredictable market conditions. In a positive light, Malaysia's economy managed to grow by 5.1% in 2024, a notable increase from the previous years growth rate of 3.6%. This boost was attributed to strong domestic demand, an influx of record-approved investments, and resilient export performance.

In a strategic move to fortify its position, the Malaysian government has pledged not to take retaliatory actions against the United States. Instead, it aims to engage in negotiations that can lead to mutually beneficial solutions. This approach reflects a commitment to diplomacy and constructive dialogue in international trade relations.

Furthermore, Abdul Rasheed acknowledged the persistent volatility of the Malaysian ringgit, stating that the central bank would work diligently to encourage inflows from exporters to bolster the currency's stability. He assured that Bank Negara Malaysia intends to maintain an orderly foreign exchange market, steering clear of any excessive fluctuations. The central bank will ensure the ringgit market remains orderly with no excessive volatility, Abdul Rasheed affirmed, signaling confidence in Malaysia's economic management amid external pressures.