HLB Forecasts Malaysia's Economic Growth At 4.5 To 5.0 Pct For 2025

KUALA LUMPUR, Jan 18 (Bernama) -- Malaysia's economy is projected to grow at a moderate pace of 4.5 per cent to 5.0 per cent in 2025, benefitting from strong economic fundamentals and an uptick in foreign investments, Hong Leong Bank Bhd (HLB) said.

"The key growth themes include a revival in tourism, clean energy initiatives under the National Energy Transition Roadmap (NETR), and infrastructure development momentum in Johor,” the bank said, sharing its 2025 house view with clients, analysts and members of the media at its premier Wealth Symposium 2025.

"The country’s position as a neutral player in global trade tensions will also enhance its appeal to investors seeking stability and diversification," it said.

bootstrap slideshow

Meanwhile, its global markets managing director Hor Kwok Wai noted that Malaysia would be an attractive destination for investment this year as the interest rate is predicted to remain unchanged, coupled with its under-controlled inflation.

“Another factor that may contribute to this is Malaysia's tourism sector. I think that is a story that is not generally very well told. The tourism rebound is real and very much expected to be strong, benefitting the economy in 2025,” he said during the presentation session here today.

HLB head of regional wealth management Jeffrey Yap reaffirmed the bank’s role as a trusted partner for wealth management, emphasising its commitment to supporting clients’ financial goals in a dynamic global environment.

bootstrap slideshow

He said the wealth management landscape is evolving rapidly, with artificial intelligence (AI)-powered solutions, mobile accessibility, and the democratisation of information drastically changing how people invest.

This rapid transformation is also happening against the backdrop of a significant shift in global wealth creation, with the Asia-Pacific region now leading the way.

“At HLB, we are embracing these changes to enhance your experience, but we also recognise that true wealth management goes beyond technology – it’s about understanding your values, your aspirations, and your legacy,” he said.

He also noted that among the industries likely to perform well this year, besides AI, are healthcare and renewable energy.

“I think a lot of the technology advancements coming from AI will be applicable in the healthcare sector, particularly in genetics and genome analysis, equipment, and robotic medicine.

“Lastly, I think that on the back of a reduction in production costs, renewable energy will continue to be very strong. We saw what happened this year with extreme weather. We believe that renewable energy is the area that should be focused on," he told reporters after the symposium ceremony.

Additionally, the bank highlighted AI as a potential “next frontier”, with the sector’s focus on energy, power management, and quantum computing presenting significant opportunities.

Given that past innovation cycles, like the personal computer and smartphone era, have seen intra-year fluctuations, investors are advised to embrace volatility and expect rewards over the long term, it added.

-- BERNAMA