BNM governor Abdul Rasheed Ghaffour said the central bank had taken a tariff assumption of between 25% and 30% during tariff negotiations.

Malaysia’s exports to the US were subjected to a 19% tariff effective Aug 1.

“There is no need for us to revise the growth numbers. In terms of the balance of risk growth and gains, the completion of negotiations reduces the uncertainty.

“But again, there is still uncertainty that lingers, in terms of the sectoral tariff, for example, and also in terms of the developments of discussions and negotiations with certain countries, which have not concluded yet,” Bernama quoted him as saying after announcing Malaysia’s Q2 2025 economic growth today.

Rasheed also said the ringgit had strengthened by 5.1% against the US dollar in Q2, primarily driven by broad US dollar weakness.

He said this was driven by expectations of more subdued US economic growth, rising uncertainties over US trade policies, and growing concerns over its fiscal sustainability.

“The ongoing coordinated efforts by the government and BNM, which include proactive engagements with corporates and investors, have encouraged healthy two-way flows in the domestic foreign exchange market observed during the quarter,” he said.

The ringgit’s nominal effective exchange rate also appreciated by 1.5% against the currencies of Malaysia’s major trading partners in Q2.