Market Outlook - HSBC Raises Growth Expectations for Malaysia

Foreks - Malaysia's strong growth momentum has led HSBC economists to revise their GDP growth forecast for 2025 from the previously estimated 4.6% to 4.8%. HSBC Economists also raised their GDP growth forecast for 2024 from 5.0% to 5.2%. Economists identified potential U.S. tariffs targeting Malaysia's trade surplus and semiconductor sector as headwinds. Following the latest data, economists also lowered their inflation forecasts for 2024 and 2025 to 1.9% and 2.7%, respectively. HSBC expects the Malaysian Central Bank to maintain its policy rate at 3% and remain data-dependent, focusing on inflation trends.