2Q 2025 GDP Growth Driven By Government’s Centrality Approach - PM Anwar

KUALA LUMPUR, Aug 30 (Bernama) -- Malaysia's gross domestic product (GDP) growth of 4.4 per cent in the second quarter of 2025 was achieved through the government’s adoption of a centrality approach amid an uncertain geopolitical and economic environment, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the government was taking the same approach as ASEAN countries by adopting centrality in the face of mounting tariffs, and escalating trade tensions between the United States (US) and China.

“We are on good terms with China, and we are on good terms with the US. Two weeks ago, I received a phone call from US President Donald Trump. Tomorrow, after the Independence Day parade, I will visit China at the invitation of President Xi Jinping.

"That is Malaysia's wisdom," he said during the Prime Minister's Address in conjunction with the 2025 National Day celebration at the Malaysia Agriculture Exposition Park Serdang (MAEPS)  today.

Anwar said Malaysia’s leadership sometimes disagreed with others, but such decisions were guided by the need to protect the interests of the nation and its people.

“There are matters on which we may disagree, but it is the wisdom of our national leaders to safeguard the interests of the country and its people.

“If you follow extreme sentiments of wanting war here and war there, the people will suffer,” he said.

He noted that Malaysia takes a firm position on Gaza and humanitarian issues, while maintaining  international friendships to safeguard its people and strengthen the economy.

"That's why we still recorded 4.4 per cent in the second quarter of this year, and that figure is impressive," he said.

On the fiscal deficit, the Prime Minister said the MADANI government's success in narrowing the deficit demonstrates Malaysia’s progress as a developing country.

“What was the deficit when we took over ? 5.6 per cent. In our first year, we brought it down to five per cent. Then 4.8 per cent. This year it is 3.8 per cent. That is a record for any developing country.

“But while reducing the deficit, wages are also rising. It is not that we cut the deficit, and salaries fell. In fact, spending has increased for all states, including those under the opposition — Perlis, Kedah, Kelantan and Terengganu,” he said.

Anwar also reminded that although the national debt remains high, new borrowings have been reduced from RM100 billion to RM70 billion, while salaries, allocations, and Rahmah Cash Contributions have been raised.

“Some dislike it when I point out that we inherited more than RM1 trillion in debt. But that is the reality, and it includes RM1.5 trillion in contingent liabilities.

“Malaysia is not bankrupt, but governance must rest on key principles. If the nation is to defend its prosperity, sustain growth projections and retain investor confidence, both foreign and domestic, then the deficit must be reduced,” he added.

-- BERNAMA