Kuala lumpur: The International Monetary Fund's (IMF) assessment on Malaysia's economy shows that the country's prudent macroeconomic and financial policies have played a critical role in anchoring growth, economists said.

According to BERNAMA News Agency, Putra Business School economist Associate Professor Ahmed Razman Abdul Latiff noted that Malaysia's economic performance continues to reflect strong underlying fundamentals, driven by sensible policy measures. He emphasized that the IMF's assessment underscored the strong economic performance, which has helped maintain stability and provide a robust buffer against external shocks.

The IMF released a statement on Friday indicating that Malaysia has demonstrated notable resilience against global trade tensions and policy uncertainty, with its economy growing at a healthy pace this year. This growth has been supported by strong domestic consumption and investment, solid employment growth, and a global tech-sector upcycle. The report also highlighted the October 2025 Malaysia-United States trade deal, which has helped reduce uncertainty for businesses and consumers in Malaysia. The fund expects Malaysia's economic resilience to continue in the near term, supported by strong domestic demand.

Moving forward, Ahmed Razman opined that continued fiscal discipline targeting a lower deficit budget, data-driven monetary policy, and structural reforms on wages and job mismatch will be critical to rebuilding economic buffers. He stressed the importance of ensuring sustainable and inclusive growth amid an uncertain global environment.

Meanwhile, Sunway University economist Dr Yeah Kim Leng believed that the positive review by the IMF has affirmed Malaysia's resilience, particularly in its ability to buck slowdown trends and shield itself from global headwinds. He noted that this resilience was reflected as the economy expanded above expectations, registering a 5.2 percent gross domestic product (GDP) growth in the third quarter of 2025.

Dr Yeah highlighted that the preemptive interest rate cut, along with gradual approaches in fiscal consolidation and subsidy rationalisation, have been effective in navigating the turbulent global landscape. These measures have sustained consumer and investor confidence with targeted approaches, and the IMF's favourable assessment is expected to further fortify confidence.