Overview

Malaysia's economic outlook remains positive,
with the Leading Index increasing marginally by 0.04 per cent in May 2025

 Malaysia's economy shows signs of moderation as the Leading Index (LI) recorded a marginal year-on-year increase of 0.04 per cent, reaching 113.7 points in May 2025. This marginal increase of 0.04 per cent was driven by sustained strengthening in Real Imports of Semi Conductors (19.1%) and the Number of New Companies Registered (15.9%). However, the positive performances were offset by declines in four other components, making the overall growth relatively modest. On a monthly basis, the LI also recorded a 0.1 per cent uptick, primarily contributed by 0.5 per cent rise in the Number of Housing Units Approved.

Looking at the smoothed long-term trend in May 2025, the LI remained below the 100.0 points. Nevertheless, Malaysia’s economic outlook is expected to remain moderate in the near future supported by the easing of monetary policy which could potentially stimulate domestic demand and encourage private investment despite global uncertainty.

Regarding the current economic performance, the Coincident Index (CI) recorded an improvement of 1.3 per cent, reaching 127.7 points in May 2025 as compared to 126.0 points in the same month of the previous year. This performance was influenced by widespread gains across all components, particularly the Real Contributions to EPF (4.3%). However, the monthly performance of the CI recorded 0.1 per cent decline attributed by contractions in nearly all CI components, except for Capacity Utilisation in Manufacturing and the Volume Index of Retail Trade, both of which recorded a 0.2 per cent increase.

The Diffusion Index for LI remained 71.4 per cent in the reference month. Meanwhile, the Diffusion Index for CI decreased to 66.7 per cent as compared to 83.3 per cent in the previous month.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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