MALAYSIA recorded a slower inflation rate of 1.8 per cent in 2024, down from 2.5 per cent in the previous year, as government subsidies, a stronger ringgit, and lower global commodity prices helped keep price pressures in check, according to the Department of Statistics Malaysia (DOSM).
In a statement released today, the department said Malaysia's inflation performance aligns with the global trend, with global inflation easing to 5.7 per cent in 2024 from 6.6 per cent in 2023, citing the International Monetary Fund’s World Economic Outlook Database (April 2025).
“Along with the strengthening of the ringgit and the decline in global commodity prices, the government initiatives to regulate the prices of goods and services, as well as subsidies for certain items, to a certain extent, have curbed Malaysia’s inflation from rising further,” DOSM said.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that nearly all consumer price categories recorded increases in 2024, except for information and communication, which fell by 1.5 per cent, and clothing and footwear, which dipped by 0.3 per cent.
“The slower increase in Malaysia’s inflation was driven by the restaurants and accommodation services (3.1 per cent); food and beverages (2.0 per cent); health (1.8 per cent); education (1.5 per cent); transport (1.0 per cent), and furnishings, household equipment and routine household maintenance group (0.7 per cent),” he said.
Mohd Uzir pointed out that despite the moderation in headline inflation, housing, water, electricity, gas, and other fuels recorded a notable increase of 3.0 per cent, largely due to revised sewerage service charges and water tariff adjustments implemented in early 2024.
“This was due to the rise in sewerage services charges by Indah Water Konsortium in January 2024 that offset higher operational costs,” he said.
He added, “The increase in this group was also driven by the adjustment of water supply service tariffs by the government through the National Water Services Commission, which involved an average increase of 22 cents per cubic metre for domestic users in Peninsular Malaysia and Wilayah Persekutuan Labuan, effective 1 February 2024.”
Meanwhile, a slowdown in transport inflation was mainly due to softer vehicle price increases, with the subgroup recording a marginal rise of 0.1 per cent in 2024 compared to 1.4 per cent in 2023.
However, the cost of operating personal transport equipment rose by 1.3 per cent in 2024 (2023: 0.8 per cent), attributed to the government's targeted diesel subsidy reforms introduced in June 2024 to prevent misuse of subsidised fuel.
At the state level, most regions recorded slower inflation, though four states surpassed the national average: Penang (3.0 per cent), Pahang (2.4 per cent), Sarawak (2.4 per cent), and Selangor (2.1 per cent). Labuan registered the lowest increase at just 0.7 per cent.
“All states recorded a slower increase in the inflation of the food and beverages group in 2024,” said Mohd Uzir.
Comparatively, within ASEAN, Malaysia’s inflation rate remained moderate. Lao PDR posted the highest inflation at 23.1 per cent, while Brunei Darussalam recorded the lowest at -0.4 per cent.
“Five countries registered an inflation rate higher than Malaysia (1.8 per cent), namely Lao PDR, Vietnam, the Philippines, Singapore and Indonesia,” Mohd Uzir added. “Meanwhile, Cambodia, Thailand and Brunei Darussalam recorded inflation rates lower than Malaysia.” - April 29, 2025
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