KUALA LUMPUR: Malaysia’s headline inflation edged up slightly to 1.4 per cent in November 2025 from 1.3 per cent in the previous month, said Bank Negara Malaysia (BNM).
In its Monthly Highlights for November 2025, the central bank said the rise was driven partly by higher cigarette prices following the excise duty increase announced in Budget 2026 and higher food-at-home prices, particularly fresh meat and fish.
However, BNM said core inflation remained unchanged at 2.2 per cent. Core inflation excludes volatile items like food and fuel.
"Core inflation remained stable, reflecting steady underlying price pressures, with higher inflation in mobile communication services and motor vehicles offset by lower inflation in jewellery and watches and audio-visual services,” it said.
On the production front, BNM said manufacturing output growth accelerated, with the Manufacturing Industrial Production Index registering a 6.5 per cent growth in October 2025 versus September’s 5.0 per cent.
"Export-oriented clusters strengthened to 7.2 per cent (September 2025: 4.8 per cent), driven mainly by electrical and electronics (E&E) and machinery and equipment,” the central bank said.
Meanwhile, domestic-oriented manufacturing clusters eased to 4.9 per cent from 5.3 per cent in September 2025, supported by robust growth in food and beverage and pharmaceuticals, offsetting the contraction in motor vehicle production.
BNM said credit to the private non-financial sector grew by 5.5 per cent in November, slightly lower than the 5.7 per cent recorded in October, supported by steady growth in outstanding loans.
"Business loan growth moderated to 5.0 per cent following slower loan growth among small and medium enterprises (SMEs), while loan growth among non-SMEs increased, particularly for investment-related purposes,” it said.
Household loan growth remained stable at 5.7 per cent amid sustained loan growth across most purposes, BNM added.
On financial stability, the central bank said banks’ liquid asset buffers remained adequate, with the aggregate liquidity coverage ratio at 145.6 per cent in October.
"Asset quality in the banking system continued to be sound,” BNM said, adding that the gross impaired loans ratio remained stable at 1.4 per cent, while the net impaired loans ratio recorded a marginal uptick to 1.0 per cent due to lower provisions.
BNM also said November’s domestic financial markets were influenced by shifting expectations of the United States Federal Reserve’s monetary policy path.
It added that the ringgit appreciated by 1.5 per cent against the US dollar in November while the FBM KLCI declined by 0.3 per cent amid net foreign equity outflows. - Bernama
