Bank Negara Malaysia governor Abdul Rasheed Ghaffour also attributed the growth to expansion in household spending, as well as favourable labour market conditions and government policy support.

The figure aligns with the advanced estimate of 5.3% reported by the statistics department in October. In the corresponding quarter last year, the country registered a growth rate of 3.3%.

”In the external sector, exports continued to strengthen on the back of recovering external demand and positive spillovers from the global tech upcycle,” Abdul Rasheed told a press conference here today.

He said the stable inflation rate of 1.9% for both headline and core inflation was a result of these factors. However, he added, the inflation outlook remains subject to the impact of government policies, global commodity prices, and financial market developments.

According to Rasheed, the share of Consumer Price Index (CPI) items showing monthly price increases decreased to 38.9% in Q3, down from 49.4% in Q2.

On the year-to-date, the country recorded an inflation average of 1.8%.

As for the ringgit, the central bank said it appreciated by 14.9% against the US dollar, with the ringgit nominal effective exchange rate (NEER) rising by 9.9%.

Rasheed said this improvement was partly due to the US Federal Reserve’s shift towards monetary policy easing, which reduced pressure on regional currencies, including the ringgit.

The ringgit has recovered from a 26-year low in February, strengthening by approximately 2% against the dollar this year.

However, Rasheed said the ringgit depreciated by 7.8% against the US dollar from Oct 11 to Nov 13 due to a stronger US dollar during this period.

This is amid expectations for smaller US policy rate reductions following robust US economic data, he said.