KUALA LUMPUR, March 12 (Xinhua) -- Moody's Ratings expected the Malaysian economy to expand 5 percent in 2025, largely keeping pace with the 5.1 percent growth in 2024.

The rating agency said in a note on Wednesday that a stable labor market, largely benign inflation, and fiscal transfers will support consumption, despite some risks from a planned fuel subsidy reform.

Meanwhile, the agency said that government policies, such as the National Energy Transition Roadmap and New Industrial Master Plan, will drive private and public investments.

According to the agency, these policies will also improve the country's foreign direct investment (FDI) flows related to shifting regional supply chains and enhancement of Malaysia's semiconductor manufacturing and data center capabilities.

"We expect the implementation of these strategies to support credit growth in the next few years," it said.

It also said that risks associated with trade tariffs and geopolitical tensions will be mitigated by Malaysia expanding market access and diversifying trade partners, including deepening economic cooperation with neighboring Singapore. Enditem

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