Kuala lumpur: Malaysia’s gross domestic product (GDP) growth of 4.4 per cent in the second quarter of 2025 was achieved through the government’s adoption of a centrality approach amid an uncertain geopolitical and economic environment, said Prime Minister Datuk Seri Anwar Ibrahim. He said the government was taking the same approach as ASEAN countries by adopting centrality in the face of mounting tariffs, and escalating trade tensions between the United States (US) and China.
According to BERNAMA News Agency, Anwar emphasized Malaysia’s diplomatic balance, maintaining good relations with both China and the US. He noted a recent phone call with US President Donald Trump and an upcoming visit to China at the invitation of President Xi Jinping as evidence of Malaysia’s strategic diplomacy. He stressed the importance of these relationships in safeguarding national interests and the well-being of its citizens.
Anwar highlighted that Malaysia’s leadership makes decisions based on national interest, even if it occasionally leads to disagreements with other nations. He cautioned against extreme sentiments that could lead to conflict, emphasizing that such actions would ultimately harm the people. He noted Malaysia’s strong stance on Gaza and humanitarian issues while maintaining international friendships to bolster the economy.
He pointed to the recorded 4.4 per cent GDP growth in the second quarter as a testament to Malaysia’s effective governance. Discussing fiscal matters, Anwar noted the MADANI government’s success in reducing the fiscal deficit, which stood at 3.8 per cent, marking significant progress from previous years.
Anwar also addressed the national debt, acknowledging its high level but pointing out efforts to reduce new borrowings and increase salaries, allocations, and Rahmah Cash Contributions. He underscored the importance of reducing the deficit to sustain growth projections and retain investor confidence, both foreign and domestic.