Overview

2.2 per cent growth in the August 2026 Leading Index,
signaling that the Malaysian economy continues to grow

The Leading Index (LI) registered an annual growth of 2.2 per cent in August 2026, with the index rising to 115.9 points as compared to 113.4 points in the same month of the previous year. This upward trend was supported, among others, by Real Imports of Semiconductors, which posted an increase of 18.7 per cent. However, the overall momentum was offset by a more moderate performance in several segments, particularly the Number of Housing Units Approved. The LI also recorded a monthly increase of 0.2 per cent, driven by a 0.7 per cent contribution from the Number of New Companies Registered.

Looking ahead, the LI's long-term trend for August 2026 moved above the trend level to 100.2 points, reflecting continuous prospects for Malaysia’s economic expansion. This outlook is supported by positive national economic growth projections, alongside a recovery in export-oriented industries and sustained global demand for semiconductors, particularly to meet artificial intelligence (AI) and technology investment requirements.

In terms of current economic performance, the CI grew by 1.9 per cent year-on-year to 131.4 points in August 2026, as compared to 128.9 points in August 2025. This growth was driven by a 9.9 per cent increase in Real Contributions, Employees Provident Fund (EPF). However, on a month-on-month basis the CI edged down marginally by 0.1 per cent, following a 0.2 per cent decrease in Capacity Utilisation in Manufacturing.

The Diffusion Index for the LI stood at 85.7 per cent in August 2026, while the Diffusion Index for the CI remained unchanged at 66.7 per cent.

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