Bank Negara Malaysia (BNM) announced the country's economy grew by 5.1% in 2024, with inflation under control at 1.8%. The ringgit also performed well, gaining 2.7% against the US dollar and 7.5% against other major currencies.
In its annual report released on 24 March 2025, BNM said the Malaysian economy remained stable despite global uncertainties, supported by strong domestic demand and effective price controls.
Digital Economy & Islamic Finance Continue to Grow
The report also showed a surge in the use of digital transactions, with e-payments increasing by 19%, averaging at least one digital transaction per person per day. Despite the increasingly digital economy, BNM stated that access to cash remains essential to ensure a balanced payment system.
Malaysia also continues to strengthen its position as a leader in the global Islamic finance sector, with various initiatives to expand Shariah recognition and expand the international Islamic finance market.
For instance, Malaysia was the first country in the world to introduce Green Sukuk in 2017 to finance sustainable projects in compliance with Shariah principles.
2025 Forecast
BNM expects Malaysia's economic growth for 2025 to be in the range of 4.5% to 5.5%, driven by continued domestic demand. However, inflation is expected to increase to 2% to 3.5%, depending on global factors such as commodity prices and geopolitical tensions.
Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour said ‘While uncertainties remain on the global horizon, BNM will continue to faithfully discharge our mandate and build the trust of the rakyat. Our diversified economic structure and a wide array of policy tools will accord us the resilience and agility to navigate these headwinds. We are confident that the Malaysian economy will remain on a steady growth path, with inflationary pressures to remain broadly manageable. With favourable domestic conditions expected, Malaysia should continue its pursuit of key structural reforms to ensure sustainable growth for the years to come.’
As audited and certified by the Auditor General, the financial position of BNM remained healthy in 2024. Total assets amounted to RM621.54 billion as at 31 December 2024. A net profit after tax of RM13.16 billion was recorded for the financial year, of which RM7.91 billion has been transferred into BNM’s Risk Reserve. BNM has declared a dividend of RM5.25 billion to the Government for the financial year 2024.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
