KUALA LUMPUR — Malaysia is on track to meet its 2025 gross domestic product (GDP) growth target of between 4.5 and 5.5 per cent despite the risks posed by the tariff war, the country’s Economy Minister Seri Rafizi Ramli has said.

At least over the past month, optimism for Malaysia's medium- and long-term growth prospects has remained unchanged, Rafizi told reporters after launching the World Bank report titled A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia on February 5.

Although the ringgit has strengthened in the past week, the government is closely monitor the situation to promptly respond to potential risks, he said. In the coming time, the Ministry of Investment, Trade and Industry (MITI) will be responsible for collecting comments and proposals from all ministries for the government’s consideration.

According to the minister, the trade war will likely remain a permanent feature of the global economy and that Malaysia will need to navigate around the adjustments and volatility caused by it.

He said the projection that the world will be more digital and artificial intelligence (AI) driven, which will benefit Malaysia as a key semiconductor hub.

That means demand for chips will go up and that will bolster Malaysia's trade. Our long-term plan is to make sure that Malaysia plays a pivotal role in that global supply chain, and that has not changed either. So a lot of our economic plans have been built around long-term megatrends, Rafizi noted.

On the bill to monitor the carbon capture, utilisation and storage (CCUS) industry in Malaysia, he said it will be tabled in the current Parliament sitting. We are going through some final drafting. The first draft was brought for discussion. We're going through some improvements based on feedback from stakeholders. So, the target is still to finalise and table the bill in the first week of March, the minister said.

Regarding the bill to monitor the carbon capture, utilisation and storage (CCUS) industry in Malaysia, he shared that his ministry is amending some contents based on feedback from stakeholders, with the goal of finalising and submitting the draft to the parliament in the first week of March. — VNS