Malaysia’s Economy to Expand in 2025 Despite Slower Leading Index Growth

Leading Index (LI) Slows but Remains Positive

Malaysia’s Leading Index (LI) growth slowed to +0.4% YoY in Jan-25 (compared to +3.4% YoY in Dec-24).

Despite the slowdown, the economy continues to expand, marking 14 consecutive months of LI growth.

Strong performance in Real Imports of Semiconductors and Housing Units Approved contributed to this trend.

Exports Growth Accelerates in Feb-25

Total trade expanded by +5.9% YoY in Feb-25 (compared to +3.1% YoY in Jan-25).

Exports rose by +6.2% YoY, driven by higher shipments of E&E (Electrical & Electronics) and palm oil products.

Retail Trade Strengthens in Jan-25

Retail trade growth accelerated to +8.2% YoY in Jan-25 (from +5.4% YoY in Dec-24).

However, overall distributive trade growth slowed to +4.6% YoY (Dec-24: +5.7% YoY) due to moderate growth in wholesale trade and weaker motor vehicle sales.

GDP Growth Projection for 2025

Malaysia’s GDP is expected to grow at +4.6% in 2025 (compared to +5.1% in 2024).

Despite external uncertainties, domestic demand from consumers and businesses remains strong, supporting economic expansion.

Economy expands

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