KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Malaysia’s economy expanded 4.4% YoY in 2Q 2025, matching 1Q’s pace, as robust domestic demand offset a slowdown in exports, according to the Department of Statistics. The figure was just shy of the 4.5% advance estimate.
On a seasonally-adjusted basis, GDP growth accelerated to 2.1% QoQ from 0.7% in 1Q.
BNM’s View
Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour said the economy faces tariff-related uncertainty “from a position of strength,” with the official 2025 growth forecast of 4.0%-4.8% deemed broad enough to capture current risks.
Tariff Impact: The US recently imposed a 19% import tariff on Malaysian goods as part of wider trade actions, alongside a blanket 10% tariff since April. A threatened 100% tariff on imported semiconductors — which account for ~one-third of Malaysia’s US exports — remains a key risk.
The additional 9% tariff is within BNM’s estimates, but semiconductor-specific measures are a “wild card.”
Demand-Side Performance
Private Consumption: +5.3%
Private Investment: +11.8%
Public Consumption: +6.4%
Public Investment: +13.6%
Net Exports: -73% as imports rose faster than exports
Supply-Side Breakdown
Services: +5.1%
Manufacturing: +3.7% (slower growth)
Construction: +12.1% (moderating)
Agriculture: +2.1% (slightly faster)
Mining & Quarrying: -5.2% (steeper contraction)
Outlook
While domestic demand remains the key growth engine, escalating US tariffs — particularly on semiconductors — could weigh on Malaysia’s export performance in the coming quarters.
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