In a statement, the central bank said that at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.

“The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability.”

BNM expects the global economy to be sustained at current levels by positive labour market conditions, moderating inflation and less restrictive monetary policy in 2025.

The continued tech upcycle, it said, is expected to support global trade.

On the other hand, the outlook for global growth, inflation and trade is subject to considerable uncertainties surrounding tariff and other policies from major economies and geopolitical developments, BNM said.

“Such uncertainties could also lead to greater volatility in the global financial markets,” it added.

It said that despite the external uncertainties, Malaysia’s economic activity is expected to be sustained in 2025, anchored by domestic demand.

Employment and wage growth, as well as policy measures, including the upward revision of the minimum wage and civil servant salaries, will support household spending, it said.

“The robust expansion in investment activity will be sustained by the progress of multi-year projects in both the private and public sectors, the continued high realisation of approved investments, as well as the ongoing implementation of catalytic initiatives under national master plans.”

Amid global policy uncertainties, exports are expected to expand at a more moderate pace, supported by the global tech upcycle, continued growth in non-electrical and electronic goods, as well as higher tourist spending.

However, it warned that the growth outlook is subject to downside risks from an economic slowdown in major trading partners following significant uncertainties surrounding trade policies and lower-than-expected commodity production.