Malaysia's Economy Expands 5.2 Pct In 3Q Sustained By Domestic Demand, Exports - BNM

KUALA LUMPUR, Nov 14 (Bernama) -- Malaysia's economy expanded by 5.2 per cent in the third quarter of 2025 (3Q 2025) against 4.4 per cent in 2Q 2025, driven by sustained domestic demand and higher net exports, said Bank Negara Malaysia (BNM) Governor Abdul Rasheed Ghaffour.

He said household spending was supported by positive labour market conditions, income-related policy measures, and cash assistance programmes, while on the external front, net exports registered higher growth as exports outpaced imports.

"Malaysia’s economy grew by 4.7 per cent in the first nine months of 2025, within the official forecast range of 4–4.8 per cent, reflecting our continued resilience in the face of global challenges.

"Looking ahead, global economic conditions will remain challenging and we need to keep strengthening our economic buffers to weather any headwinds that may come our way," he said in a statement on Friday.

According to Abdul Rasheed, growth on the supply side was led by the services and manufacturing sectors, mainly contributed by consumer-related subsectors and stronger production in electrical and electronics (E&E) and consumer-related goods, respectively.

Meanwhile, the mining and quarrying sector rebounded, reflecting a recovery in crude oil and natural gas production post-scheduled maintenance work.

Quarterly, seasonally-adjusted basis, growth expanded by 2.4 per cent in 3Q 2025 against 2.2 per cent in 2Q.

In the meantime, the governor said headline inflation remained stable in 3Q at 1.3 per cent, while core inflation rose to 2 per cent (2Q 2025: 1.3 per cent and 1.8 per cent, respectively).

While the higher core inflation added impetus to headline inflation during the quarter, this was offset by declines in selected administered prices.

"In particular, electricity (-4.6 per cent; 2Q 2025: 0 per cent) and diesel (-5 per cent; 2Q 2025: 8 per cent) prices were lower during the quarter, in line with the recent electricity tariff restructuring and moderate global cost conditions.

"Inflation pervasiveness, measured by the share of consumer price index (CPI) items registering monthly price increases, edged higher to 43.8 per cent during the quarter (2Q 2025: 41.8 per cent), while remaining below the historical average of 44.5 per cent," Abdul Rasheed added.

Abdul Rasheed emphasised that Malaysia remains on track to achieve growth of between 4 per cent and 4.8 per cent in 2025, supported by resilient domestic demand.

"Household spending will be supported by continued employment and wage growth, as well as income-related policy measures, and investment activity will be sustained by progress of infrastructure projects, further realisation of approved private investments, and the implementation of national master plans.

"On the external front, export growth is expected to be impacted by tariffs and more moderate external demand. However, growth would be supported by continued demand for E&E goods, inbound tourism and the recovery in mining-related exports," he noted.

In addition, Abdul Rasheed noted that both headline and core inflation are expected to remain moderate for the remainder of the year, supported by steady domestic demand and continued easing in global cost conditions.

"Heading into 2026, inflation is expected to remain moderate amid steady domestic demand, stable labour market conditions, and favourable supply conditions," he said.

-- BERNAMA