KUALA LUMPUR: The lowering of US import tariffs on Malaysian goods from 25 per cent to 19 per cent is set to revitalise Malaysia’s export-driven manufacturers, according to Kenanga Investment Bank Bhd (Kenanga IB).
The bank highlighted that the tariff reduction will strengthen business confidence and improve global competitiveness.
Kenanga IB stated, “As external conditions stabilise, the manufacturing sector is poised for a gradual recovery towards year-end, supported by the global tech upcycle, rising demand for 5G infrastructure, artificial intelligence (AI) deployment, and a wave of new product launches.”
The bank added that these factors, alongside improved trade flows, should drive output growth and reinforce economic momentum.
Recent data showed Malaysia’s manufacturing purchasing managers’ index (PMI) rising to 49.7 in July 2025 (June: 49.3), nearing the neutral 50.0 mark.
New export orders rebounded at the strongest pace in eight months, easing the decline in overall new orders. Finished goods inventories also expanded, signalling increased restocking activity.
Kenanga IB maintained its 2025 GDP forecast at 4.3 per cent (2024: 5.1 per cent), citing resilient domestic demand and steady performance in key local industries.
“Policy measures like cash transfers, low fuel prices, and minimum wage hikes are expected to support household spending, particularly in Q4,” the bank noted.