0859 GMT - Malaysia's economic outlook may face rising risks from U.S. tariff pressures, prompting HSBC to cut its 2025 GDP forecast for the country to 4.2% from 4.7%, and to 3.9% from 4.5% for 2026. A temporary reprieve for electronics exports offers some relief, but uncertainty may keep investors cautious in near term, HSBC economists Yun Liu and Madhurima Nag say in a note. Trade talks may aim to boost imports of U.S. goods to narrow a $25 billion trade surplus, though it's unclear how quickly purchases of planes, LNG and farm goods can close the gap, they note. Still, Malaysia's fundamentals remain solid, and foreign investment is driven by long-term factors beyond tariffs, they say. Domestic demand, especially household spending and public investment, may cushion some external shocks in 2025, they add. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
May 07, 2025 04:59 ET (08:59 GMT)
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