Malaysia's Q1 Growth Slower Than Expected Even Before Tariff News

Malaysia's economy expanded at a slower-than-expected pace in the first quarter, dragged down by weaker growth in manufacturing and construction even before the US announced plans for punishing tariffs.

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Gross domestic product rose 4.4 per cent in the January-March period from a year earlier, according to advance estimates from Malaysia's Department of Statistics on April 18.

That is below the 4.8 per cent median forecast in a Bloomberg News survey, and marks a third straight quarter of slower growth.

The mining and quarrying sector shrank 4.9 per cent as production fell.

The disappointing data comes as policymakers review the official 4.5 per cent to 5.5 per cent growth projection for 2025 on uncertainty over global trade.

Malaysia was hit with a 24 per cent US import tariff before US President Donald Trump pared it back to 10 per cent for 90 days while hiking tariffs on China.

"The downside risk to economic growth has become elevated, especially in the context of the US reciprocal tariff," said Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia.