KUALA LUMPUR] Bank Negara Malaysia’s earlier-than-expected rate cut, the first since 2020, is sending a sign that policymakers are bracing for a tougher second half of 2025 as trade tensions with the United States and weakening global demand cast a shadow over the country’s economic outlook.

Malaysia's Prime Minister Anwar Ibrahim on Wednesday urged Southeast Asian countries to "act with purpose" and enhance trade among each other in the face of global uncertainty, as regional foreign ministers met amid renewed jitters over U.

Prime Minister Datuk Seri Anwar Ibrahim said the US still values its ties with Malaysia and also wants to continue working with other South-east Asian countries, after meeting US Secretary of State Marco Rubio here today.

U.S. Secretary of State Marco Rubio will meet his Russian counterpart in Malaysia for what could be a testy conversation as tensions between the countries rise over Moscow's increasing attacks on Ukraine.

Bank Negara Malaysia cut the overnight policy rate by 25 basis points to 2.75% on Wednesday, the first easing since July 2020.

Malaysia remains optimistic that further negotiations will yield a positive outcome regarding the United States tariffs set to take effect on August 1, said Datuk Seri Tengku Zafrul Abdul Aziz.

For all the bluster and optimism from Prime Minister Anwar Ibrahim’s government over its efforts to negotiate a reduction on the proposed US tariffs, Malaysia was among several countries that instead saw its rate increase. On July 8, it was announced that the rate would go up one percentage point to 25 per cent.

Tariff concerns will likely weigh on Malaysia’s currency, stocks and economy in the near term, according to analysts, after the country’s central bank cut its benchmark interest rate for the first time in five years.

Former Malaysian MP Tan Sri Lim Kit Siang criticised US President Donald Trumps trade war policies and urged India, China, Vietnam, Japan, and Indonesia to work together for global peace, development,