Kuala Lumpur: The Ministry of Investment, Trade and Industry (MITI) anticipates a five percent growth in total trade by 2025, aiming to surpass the RM2.879 trillion mark recorded in 2024. Tengku Datuk Seri Zafrul Abdul Aziz, the minister of MITI, highlighted potential challenges, noting that tariffs from the United States or new measures from other countries could impact this forecast.

According to BERNAMA News Agency, Tengku Zafrul emphasized the necessity for flexibility in forecasting, akin to adjustments made by global financial institutions like the World Bank and the International Monetary Fund due to geopolitical and geoeconomic factors. He acknowledged that although the target growth rate is lower than the nine percent year-on-year growth achieved in 2024, a five percent increase still represents progress.

Tengku Zafrul stated that the projected growth aligns with Malaysia’s GDP growth expectations of between 4.5 and 5.5 percent. On the free trade agreement (FTA) with the European Union, he noted that discussions have resumed and palm oil is no longer a contentious issue. However, other areas require attention before the FTA can be finalized. The minister expressed a desire for a comprehensive agreement that benefits both parties and incorporates digital and green initiatives.

Tengku Zafrul also announced the goal of completing the Malaysia-EU FTA by the following year. During the press conference, he revealed that approved digital investments up to the third quarter of 2024 amounted to RM64.8 billion, compared to RM60.5 billion for the entire year of 2023.

Between 2021 and the third quarter of 2024, the Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC) reported RM209.5 billion in approved digital investments, creating 4,704 job opportunities. A significant portion, RM145.4 billion or 69 percent, of these investments was attributed to data centers.