Malaysia’s economy is showing positive growth, as indicated by a 3.1% rise in the leading index in December 2024. This increase is driven by strong performances in the Bursa Malaysia Industrial Index and semiconductor imports. Despite a slight monthly slowdown, key economic indicators remain resilient, suggesting sustained growth fueled by domestic spending.
Malaysia’s economy is on a positive trajectory as reflected in the leading index (LI), which rose by 3.1% year-on-year (y-o-y) in December 2024, a notable improvement from the 0.4% growth recorded in December 2023. The growth is attributed primarily to a significant 27.1% y-o-y increase in the Bursa Malaysia Industrial Index and a 21.6% y-o-y rise in real semiconductor imports.
Additionally, on a month-to-month (m-o-m) basis, the LI experienced a moderate growth of 0.8%, a decline from the 1.3% m-o-m growth observed in October 2024. This growth indicates two consecutive months of positive performance, with four out of seven components of the index showing upward trends, particularly in housing unit approvals (0.3% m-o-m) and money supply (0.2% m-o-m).
Despite this growth, some components like expected manufacturing sales value and new company registrations saw slight declines of -0.1% m-o-m and -0.04% m-o-m, respectively. Contrarily, the coincident index (CI), which reflects the current economic performance, expanded by 1.8% y-o-y, reaching 126.1 points, bolstered by industrial production growth of 4.6% y-o-y.
While the LI remains under the 100.0-point threshold indicating a slower long-term trend, Malaysia’s economic outlook is bolstered by strong fundamentals, characterized by resilient domestic spending and a positive employment environment. The overall sentiment suggests sustained growth moving forward, driven by these economic pillars.
In conclusion, Malaysia’s economic indicators reveal promising growth prospects, with the leading index showing significant year-on-year improvement. Key factors contributing to this growth include strong performances in the industrial sector and ongoing domestic consumption. Despite some challenges reflected in certain index components, the overall economic landscape appears resilient, forecasting continued positive momentum in the future.
Original Source: www.bernama.com
