Kuala Lumpur, March 24 -- The Malaysian economy is projected to expand between 4.5% and 5.5% in 2025, underpinned by resilient domestic demand and ongoing investment activity, despite external uncertainties, according to the country's central bank Bank Negara Malaysia (BNM).

In 2025, headline and core inflation are expected to average between 2-3.5% and 1.5-2.5%, respectively.

In its Economic and Monetary Review 2024 released on March 24, BNM said that inflation is forecast to trend higher but will remain manageable, amid easing global costs and the absence of excessive demand pressures. BNM said global commodity prices are expected to continue to soften, leading to lower production costs for companies.

According to the bank, domestic ...