Malaysia's leading economic index increased by 1.4 percent month-over-month in October 2019, after a 0.1 percent rise in the previous month. This was the highest reading in three months, as five out of seven components posted rises: real imports of other basic precious & other non-ferrous metals (0.9 percent), real imports of semi conductors (0.4 percent), number of housing units approved (0.1 percent), real money supply M1 (0.1 percent), and expected sales value, manufacturing (0.1 percent). Year-on-year, the index rose 0.3 percent in October, after a 0.3 percent gain in September. Meanwhile, the coincident index, which measures the overall current economic performance, increased 0.9 percent month-on- month in October, following a 1.2 percent fall in September. Leading Economic Index in Malaysia averaged 0.18 percent from 1991 until 2019, reaching an all time high of 4.50 percent in April of 1994 and a record low of -3.30 percent in November of 1991. source: Department of Statistics, Malaysia
Leading Economic Index in Malaysia is expected to be -0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Leading Economic Index in Malaysia to stand at 1.50 in 12 months time. In the long-term, the Malaysia Leading Economic Index is projected to trend around 1.80 percent in 2020, according to our econometric models.
Malaysia Leading Economic Index
In Malaysia, the Leading Index provides early signal on the direction in which the economy is going. It is calculated based on real money supply M1, Bursa Malaysia industrial index, real total traded (eight major trading partners: Japan, USA, Germany, UK, Singapore, Thailand, China, Canada), CPI for services (inverted), industrial material price index, ratio of price to unit labor cost (manufacturing), number of housing permits approved, number of new companies registered, trend adjustment factor. The index has a base value of 100 as of 2005.