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On a monthly basis, the Index also recorded a 0.1% uptick, primarily contributed by a 0.5% rise in the number of housing units approved.
Malaysia’s economy showed signs of moderation in May 2025, according to the latest Malaysian Economic Indicators: Leading, Coincident & Lagging Indexes released by the Department of Statistics Malaysia on 25 July 2025.
The Leading Index (LI) recorded a marginal year-on-year increase of 0.04%, reaching 113.7 points, signalling modest growth momentum. Chief Statistician Mohd Uzir Mahidin attributed this slight improvement to the continued strength in real imports of semiconductors (19.1%) and a rise in new company registrations (15.9%). However, these gains were offset by declines in four other LI components, making the overall growth relatively modest.
On a monthly basis, the LI rose 0.1%, mainly supported by a 0.5% increase in the number of housing units approved. While the LI remains below the 100-point threshold, the outlook for Malaysia’s economy is expected to stay moderate in the near term — supported by easing monetary policies aimed at stimulating domestic demand and attracting private investment, even amid global uncertainties.
Meanwhile, the Coincident Index (CI) — a reflection of current economic performance — registered a 1.3% year-on-year increase, rising to 127.7 points in May 2025 from 126.0 the previous year. This uptick was driven by widespread gains across all components, particularly the real contributions to the EPF, which surged by 4.3%.
However, on a monthly basis, the CI slipped by 0.1%, due to declines across most components. The only exceptions were capacity utilisation in manufacturing and the volume index of retail trade, which both saw modest gains of 0.2%.
As for the Diffusion Index, the LI remained at 71.4%, while the CI decreased to 66.7% as compared to 83.3% in the previous month.
READ MORE: Malaysia's economy expected to grow between 4% - 4.8% in 2025
Photos / DOSM
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