The International Monetary Fund's (IMF) upward revision of Malaysia's economic growth forecast reflects uncertainties surrounding global trade policies, particularly the United States (US) tariff impacts.

"Despite these welcome developments, tariffs remain historically high," the IMF's chief economist said on Tuesday.

For emerging market and developing economies, the IMF raised its forecast to 4.1 percent from 3.7 percent for 2025 and to 4 percent from 3.9 percent for 2026. However, risks to the global outlook remain tilted to the downside, with potential tariff rebounds and elevated uncertainty threatening to weigh on economic activity.