KUALA LUMPUR, Nov 25 (NNN-Bernama) — Malaysia expects to see healthier economic prospects going forward, with its leading index (LI) rebounding 0.6 per cent year-on-year (y-o-y) to 110.5 points in September 2021, after a contraction of 2.3 per cent (109.8 points) in August, 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.
Malaysia’s Chief statistician Mohd Uzir Mahidin said the LI bounced back in September following the relaxation of economic activities, in line with the transition phase of the National Recovery Plan (NRP).
“The expansion of the LI was primarily backed by the increment in real imports of semiconductors, driven by the encouraging demand for electronic integrated circuits,” he said in a statement today.
On a month-on-month basis, Mohd Uzir said the LI grew further to 4.0 per cent in September versus 1.1 per cent in August, underpinned significantly by a better performance in real imports of other basic precious and other non-ferrous metals that increased 1.6 per cent, as well as real imports of semiconductors (1.1 per cent).
In terms of the Coincident Index (CI) which reflects the current state of the economy, Mohd Uzir said it grew 0.3 per cent y-o-y in September from a contraction of 1.6 per cent in August.
“In the meantime, the monthly change of the CI increased 3.9 per cent in the said month, supported by all CI components with the largest positive from the volume index of retail trade (1.5 per cent),” he said.
Moving forward, he said the expansionary Budget 2022 is expected to minimise economic pressures and bring economic growth on track.