KUALA LUMPUR: Malaysia's leading index (LI) improved to negative 0.3 per cent by recording 109.3 points in September 2023 compared to negative 0.5 per cent, anticipating a healthier economic prospect in the near future, said the Department of Statistics Malaysia (DoSM).
LI is a tool utilised for predicting economic trends four to six months ahead.
Looking at the smoothed long-term trend in September 2023, DOSM anticipated the LI to remain below the 100.0 point trend and the economy is expected to grow moderately, supported by encouraging local demand amid currency challenges and the world economic slowdown.
Chief statistician Datuk Seri Mohd Uzir Mahidin said the Bursa Malaysia Industrial Index (20.8 per cent) and number of housing units approved (17.6 per cent) contributed positively to the LI.
"Meanwhile, declines were observed in imported goods, particularly in the real imports of other basic precious and other non-ferrous metals (-16.2 per cent) and real imports of semi conductors (-14.5 per cent).
Referring to the monthly performance, the LI recorded a negative 0.4 per cent in the reference month as against 0.7 per cent in the preceding month, owing to unfavourable performance in the real imports of other basic precious and other non-ferrous metals (-1.0 per cent) and number of new companies registered (-0.8 per cent)," he said in a statement today.
In terms of the current economic scenario, DoSM said the coincident index (CI) rose by 2.1 per cent to 123.8 points in September 2023 compared to 121.2 points in the same month the previous year.
"This upturn was led by the real contributions, Employees Provident Fund (8.6 per cent), followed by the volume index of retail trade (3.6 per cent).
Simultaneously, the monthly change in CI also climbed by 0.2 per cent with total employment of manufacturing being the main contributor to the increase (0.3 per cent)," it added. - Bernama
