Malaysia’s LI rises 3.8% in May 2024, economy remains resilient

Malaysia saw its leading index (LI) grew 3.8%yoy to 114.2 points in May 2024 from 110.0 points in the same period last year, according to the Department of Statistics Malaysia. (The Star).

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Economy remains resilient

Malaysia’s Leading Index (LI) continued to increase by +3.8%yoy in May-24 (Apr-24: +4.5%yoy).

The sustained growth was attributable to increases in the Bursa Malaysia Industrial Index and an anticipated increase in manufacturing sales value. On a month-on-month basis, the LI advanced by +0.8% (April 2024: +1.0%), with four out of seven components of the LI (such as number of new companies registered and number of housing units approved)  exhibiting monthly expansion.

The Coincident Index (CI) also improved further, growing for the 33rd month at +2.2%yoy in May-24 (Apr-24: 3%yoy). From the previous month, CI rose +0.6%mom (April 2024: +0.3%mom).

Excluding real EPF contribution which fell -0.5%mom, other CI components (namely manufacturing sector’s capacity utilization, industrial production index and manufacturing employment) recorded month-over-month gains.

The improvement in CI was in line with the sustained growth in 2QCY24 GDP. “We opine the continued rise in LI signals the positive growth momentum in Malaysia’s economy will continue in the coming quarters,” says economist MIDF.