{"content":"**ECONOMY / KEY INFRASTRUCTURE UPDATES​**\n\n*   Malaysia’s economy grew by 4.4% in 1Q 2025, driven by sustained household spending, expansion in investment activities, and growth in external demand (1Q 2024: 4.2%).\n*   Malaysia’s 2025 Gross Domestic Product (GDP) growth is now expected to be lower due to new U.S. tariffs, with the International Monetary Fund (IMF) cutting its forecast from 4.7% to 4.1%, and Bank Negara’s earlier 4.5%–5.5% target is now unlikely.\n*   The headline inflation rate for 1Q 2025 has eased to 1.5% (1Q 2024: 1.7%). The stabilisation of price growth in the Housing, Water, Electricity, Gas & Other Fuels, Transport & Health sectors mainly drove this decline.\n*   Inflation is expected to grow from 2.0% to 3.5% in 2025, driven by the following factors that will be implemented throughout the year:\n    *   Targeted subsidies for RON95 petrol (June 2025);\n    *   An expansion of the Sales and Services Tax (SST) (June 2025);\n    *   Increase in electricity tariff (July 2025);\n    *   Implementation of a minimum wage of RM1,700 per month (February 2025\\*) and mandatory EPF contribution for foreign workers (4Q 2025);\n    *   Newly imposed tariff on certain Malaysian goods exports to the U.S.\n*   The labour market continues to improve in 1Q 2025, with the unemployment rate dropping to 3.1% (1Q 2024: 3.3%), the lowest post-pandemic level. This was driven by higher employment growth, boosting economic growth and consumer confidence.\n*   The Overnight Policy Rate (OPR) and base rate are expected to stay at 3.00% and 3.71% in 2025 to support growth, but a 25-basis-point cut is possible depending on the economic growth from 2Q 2025 onwards, the trajectory of inflation, and developments in U.S. – Malaysia trade talks.\n*   Malaysia is diversifying its export markets to reduce reliance on the U.S. and minimise the impact of the newly imposed tariff.\n*   Despite these challenges, Malaysia’s economy is expected to remain resilient, with ongoing policy adjustments aimed at sustaining growth, managing inflation, and strengthening its global trade position.\n\n![](https://cbre-wtw.com.my/wp-content/uploads/2025/05/Klang-Valley-Snapshot-1Q-2025.png)","original_url":"https://cbre-wtw.com.my/klang-valley-property-market-1q-2025/","path":"/klang-valley-property-market-1q-2025","title":"Klang Valley, Property Market, 1Q 2025 - CBRE | WTW","page_type":"article","word_count":329,"key_claims":["GDP 4.4% in 1Q 2025","Unemployment 3.1%, lowest post-pandemic","Inflation 1.5%","Expected to rise to 2.0-3.5% from tariffs and subsidies"],"content_summary":"CBRE WTW Klang Valley 1Q 2025: economy grew 4.4%, unemployment 3.1%, inflation 1.5%. Expected inflation rise to 2.0-3.5%.","topics":["Klang Valley","property market","GDP","inflation","unemployment"],"author":null,"published_date":"2025-05-26T09:52:32+00:00","price":null,"currency":"MYR","parent_profile":{"id":"af3538f3-ea87-4442-bc57-aea19c29ad08","slug":"cbre-wtw-com-my","name":"Home - CBRE | WTW","url":"https://cbre-wtw.com.my/"}}