Malaysia’s economy remains resilient in 2025 with a lower fiscal deficit and strong FDI, says Finance Minister II, amid US tariff wars and geopolitical turbulence.
KUALA LUMPUR: Malaysia has maintained its economic resilience in 2025, supported by the country’s trade neutrality and openness despite United States President Donald Trump’s tariff wars and geopolitical turbulence.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the country has established a solid foundation for future growth.
He added that maintaining competitiveness will require continuous reform rather than complacency.
“When I walked into this role in December 2023, Malaysia’s fiscal deficit stood at 5.5% of gross domestic product,” he said in a LinkedIn post.
“Today, it’s likely to close at 3.8% for 2025, on track for 3.5% in 2026, and the ringgit has emerged as Asia’s best-performing currency.”
He also noted unemployment holds at a decade-low 3%.
The minister said the country has achieved a record for foreign direct investment that signals confidence in Malaysia’s trajectory.
“These results came from steady implementation across MADANI Economy’s three pillars,” he said.
For 2026, the government remains committed to enhancing economic resilience, focusing towards deeper execution.
“We’ve proven that the MADANI Economy framework works,” Amir Hamzah said.
“Now it’s about sustaining momentum while navigating external shocks.”
He stated Malaysia has clearly turned a corner in its post-COVID-19 recovery and is regaining its position as the Asian Tiger.
“There’s more work ahead, and we must drive a resolute desire to keep going, anchored on the plan,” he added.
