Tengku Zafrul says this projection takes into account GDP forecast, projects currently under evaluation, and potential projects. – Bernama photo
KUALA LUMPUR (Aug 6): The Investment, Trade and Industry Ministry (MITI) has projected 2025’s approved investments to amount to RM104 billion involving manufacturing and selected services sectors under the purview of the Malaysian Investment Development Authority (MIDA).
Its Minister Tengku Datuk Seri Zafrul Abdul Aziz said this projection takes into account gross domestic product (GDP) forecast, projects currently under evaluation, and potential projects.
“Based on MIDA’s investment statistics, the first quarter of 2025 approved investments were RM89.8 billion, a 3.7 per cent increase compared to the same period in 2024.
“Therefore, considering the increasing trend of investment applications to MIDA, the investment outlook is expected to maintain positive for the whole of 2025,” he said in a written reply on the Parliament’s website today in response to Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) who asked for the government’s 2025 investment projection as well as the measures to ensure that export and investment values are not severely affected by rising US tariffs and global geopolitical uncertainty.
Tengku Zafrul said the projection remains unchanged for now as the tariff impact is mainly felt by companies that rely heavily on the US market.
He added that MITI currently has no plans to revise its 2025 trade growth targets despite the US imposing a 19 per cent tariff.
MITI will continue to monitor current developments, especially exports to the US market, and formulate appropriate mitigation strategies, he said.
“Trade performance is expected to experience a slight decline in the second half of 2025 due to reduced demand from the US following the tariff enforcement.
“A more significant impact is expected to be felt in the first quarter of 2026, when trade activity resumes post-tariff implementation,” he said.
MITI had previously projected a 5 per cent rise in Malaysia’s total trade value to RM3.01 trillion against RM2.87 trillion in 2024.
Meanwhile, he said US President Donald Trump’s latest announcement on the 19 per cent tariff rate has opened a strategic opportunity for Malaysia to remain competitive alongside other trading partners, especially among ASEAN member states with similar tariff rates.
“It should be emphasised that Malaysia successfully secured a lower tariff rate without having to compromise on core policies or national sovereignty,” he said.
However, he acknowledged that the tariff rate will still have an impact on export and investment performance, and in turn, affect Malaysia’s economy.
In the long term, he said the imposition of high reciprocal tariffs will cause a global economic slowdown, including in Malaysia, due to rising prices and declining demand, which will indirectly affect Malaysia’s economic growth rate and the global economy in general. – Bernama
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