FX.co ★ Malaysia Leading Index Drops Slightly

In February 2025, Malaysia's leading economic index experienced a slight decrease of 0.2% compared to the previous month. This followed a minor yet adjusted decline of 1.1% in January, making it the second consecutive month of downturns. Of the index's seven components, five showed a decrease: the expected sales value for manufacturing saw a reduction of 0.3% from a 0.2% increase in January; the number of new company registrations fell by 0.2% compared to a 0.1% rise; the Bursa Malaysia Industrial Index dipped 0.2% following a 0.5% decline; approved housing units decreased by 0.1%, consistent with January's figures; and the real money supply dropped by 0.1%, after a slight dip of 0.04% in the previous month. Conversely, real imports of semiconductors saw a recovery, increasing by 0.5% compared to a 0.2% drop in January, alongside imports of other basic precious and non-ferrous metals, which rose by 0.2% after a 0.6% decrease. On an annual basis, the leading index remained almost stable, posting a negligible rise of 0.004% down from a 0.4% increase in January. In contrast, the coincident index, which reflects the current state of the economy, improved by 1.9%, effectively reversing the 1.4% decline seen in January.