Malaysia's central bank cut interest rates for the first time in five years on Wednesday, as global trade uncertainties threaten the export-oriented economy, raising the prospect it may lower borrowing costs again this year to shield the economy.

Malaysia’s central bank has cut its policy rate after more than a year of holding, in what it said was a “pre-emptive measure” to ensure continued growth.

Bank Negara Malaysia said the ringgit’s exchange rate is market-determined and that the central bank’s derivative positions are used to manage liquidity conditions.