Overview

Malaysia’s economic prospects remain positive with the
Malaysia’s Leading Index recording  0.8 per cent in May 2026

The Malaysia’s Leading Index (LI) for May 2026 continued to record positive growth of 0.8 per cent, registering 114.4 points as compared to 113.5 points in May 2025. The increase was driven by the positive performance of several components, mainly Real Money Supply, M1 (9.2%) and Real Imports of Semi Conductors (2.7%), in line with stable economic liquidity and the expansion in production activities related to electronic components. However, from a monthly perspective, the LI recorded a decline of 0.5 per cent in May 2026, following the moderation in three out of seven components, namely Real Imports of Other Basic Precious & Other Non-ferrous Metals (-0.6%), Number of New Companies Registered (-0.4%) and Number of Housing Units Approved (-0.2%). 

Examining the smoothed long-term trend in May 2026, the LI remained below the 100.0 points. Nevertheless, the Malaysian economy is expected to be resilient, supported by stable domestic demand as well as the country’s ability to adapt to changes in the global environment and current technological developments.

Meanwhile, the Coincident Index (CI), which reflects the current economic conditions, rose 2.5 per cent, recording 131.2 points in May 2026 as compared to 128.0 points in the same month of the previous year. This performance was supported by growth in almost all components, except for Capacity Utilisation in Manufacturing. On a month-on-month basis, CI decreased 0.3 per cent in May 2026 due to the softer performance in several components, particularly Capacity Utilisation in Manufacturing (-0.4%), reflecting the moderation in current economic activities following the ongoing global uncertainties.

The Diffusion Index for the LI reached 57.1 per cent in the reference month, better than the 28.6 per cent recorded in the previous month. Meanwhile, the Diffusion Index for the CI slowed in May 2026, recording 66.7 per cent as compared to 83.3 per cent.

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

Not found what you looking for? Request data from us, through
Go to eStatistik
Email: data[at]dosm.gov.my
Phone: 03 8885 7128 (data request)