KUALA LUMPUR: RHB Investment Bank Bhd has highlighted potential upside risks to Malaysia’s 2025 GDP growth, citing the combined impact of reduced US tariffs and recent fiscal support measures.
The bank maintains its baseline GDP forecast at 4.2% but now sees a tilt toward 4.5% growth.
In a market strategy note, RHB stated that Malaysia’s macroeconomic outlook remains positive, supported by improving global trade conditions.
The US tariff reduction to 19% aligns with market expectations, providing a favourable trade environment.
“With ample side-lined liquidity, investors should be more aggressive in deploying cash, as much of the bad news is already priced in,“ the bank noted.
However, risks persist due to the US-China geopolitical tensions, which could affect emerging markets.
RHB pointed out that while domestic equity markets remain reactive to global trade shifts, recent fiscal measures—including Malaysia’s pre-emptive overnight policy rate cut—should bolster near-term growth.
The bank is reviewing its end-2025 FTSE Bursa Malaysia KLCI target ahead of June quarter earnings reports.
“Stronger grounds exist to increase equity exposure, starting with liquid large caps and undervalued stocks,“ RHB advised, while cautioning investors to stay nimble and favour domestic-centric stocks. – Bernama