Leading index decreases 1.5% to 108.5 points in January 2023


KUALA LUMPUR: Malaysia’s near-term economic growth is expected to face challenges with the leading index (LI) decreasing 1.5 per cent to 108.5 points in January 2023 from 110.2 points in January 2022, according to the Department of Statistics Malaysia (DoSM).

The LI is a predictive tool used to anticipate economic upturns and downturns in an average of four to six

months ahead.

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said looking at the direction indicated by the decreasing growth rate of smoothed LI in January 2023, which remained below the 100.0 points trend, indicates that Malaysia’s near-term economic prospects are expected to face headwinds.

"This aligns with the forecast by the International Monetary Fund and the World Bank which anticipated slower global economic growth in 2023,” he said regarding Malaysia’s LI, coincident index (CI) and lagging index for January 2023.

He said the number of new companies registered and real imports of semiconductors were among the components underpinning the country’s LI decline.

"All components showed decreases except for the Bursa Malaysia industrial index which increased by 0.3 per cent.

"The monthly LI also weakened by 1.5 per cent in January 2023 compared to 0.1 per cent in the previous month,” Mohd Uzir said.

The chief statistician added that for the current economic position, the CI recorded an increase of 4.5 per cent year-on-year to 119.5 points in January 2023 from 114.3 points in January 2022.

"The volume index of retail trade mainly contributed to the incline.

"However, the monthly change of CI recorded a decrease of 0.7 per cent, resulting from real salaries and wages, manufacturing (0.3 per cent), and industrial production index (0.3 per cent),” Mohd Uzir said. - Bernama

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Leading Index , January 2023 , DoSM , economy

   

Next In Business News

MAHB sustains above nine million passenger movements in April 2023
Leong Hup’s 1Q net profit rises 8.7% to RM22mil
Kitacon’s subsidiary bags RM80.95mil construction job from Boustead Balau
Iconic Worldwide continues to bet on long-term glove demand
Pekat Group posts lower 1Q net profit
PPB Group 1Q net profit rises to RM377.53mil
Demand for chocolate a boost for Guan Chong
IHH 1Q net profit soars to RM1.39bil, lifted by one-off gains, high patient volume
Ringgit ends lower against the US dollar
Public Mutual declares RM217mil distributions for 7 funds

Others Also Read