Overview

Malaysia’s economy is expected on a softened trajectory,
with the Leading Index recording 114.3 points in July 2025

The annual growth rate of the Leading Index (LI) continued to moderate in July 2025 by recording a decline of 0.5 per cent to 114.3 points as compared to 114.9 points in the same month of the previous year. Double-digit declines in Real Imports of Other Basic Precious & Other Non-Ferrous Metals (-16.3%) and the Bursa Malaysia Industrial Index (-13.4%) influenced the softer performance. Conversely, the monthly performance rebounded to 0.5 per cent in July 2025, after recording negative 0.3 per cent in the previous month. This recovery was driven by strong performance in five out of seven components, particularly the Real Imports of Semi Conductors (0.5%).

Examining the smoothed long-term trend in July 2025, the LI remained below 100.0 points. Nonetheless, Malaysia’s economy is poised for a moderate trajectory ahead. Stronger sectoral performance and steady internal demand will position the nation to navigate global challenges.

Meanwhile, the Coincident Index (CI), which measures the overall current economic performance, rose 2.2 per cent to 129.7 points in July 2025 as compared to 126.9 points in the same month of the previous year. This performance was supported by positive growth across all CI components, with the Real Contributions to the Employees Provident Fund (EPF) as the main contributor, recording 5.4 per cent. At the same time, the monthly performance of the CI strengthened by 1.2 per cent, driven by the Industrial Production Index and Real Contributions to the EPF, both of which posted a 0.3 per cent increase.

The Diffusion Index for LI and CI remained unchanged for two consecutive months, with LI recording 71.4 per cent and CI recording 83.3 per cent in the reference month.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

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