Malaysia's consumer and business sentiment fell 25.4 points and 7.5 points respectively in the third quarter, according to a report released by the Malaysian Institute of Economic Research (MIER) Tuesday.

The Consumer Sentiments Index (CSI) slipped to 107.5 points in the third quarter after hitting a record high in 21 years of 132.9 points in the second quarter, while the Business Conditions Index fell to 108.8 points, from 116.3 points.

"This indicates that consumers have remained positive in recent months, and their sentiment in the prior quarter could more likely be just a reflection of the post-election euphoria," said the research house, adding that the business sector is still expanding, but it is moderating.

The research house has also revised downward its full-year growth forecast on Malaysia to 4.7 percent, from its earlier projected growth of 5.5 percent.

"The slow pace of GDP growth is expected to persist into next year, in the range of 4.5 percent to 5 percent," it said, adding that domestic demand will continue to be the main driver, supported by private consumption.