FX.co ★ Malaysia’s Leading Index Slows Sharply in May

In May 2025, Malaysia's leading economic index recorded a modest increase of 0.1% month-over-month, a marked deceleration from the previous month's robust rise of 0.8%, the quickest in four months. Notably, this marks the third consecutive monthly increase. Out of the seven components measured, three experienced declines: real imports of semiconductors fell by 0.3% compared to a 0.3% rise in April, the Bursa Malaysia Industrial Index decreased by 0.3% against a 0.1% drop previously, and the expected manufacturing sales value slipped by 0.1% from a 0.03% increase. Meanwhile, new company registrations grew at a reduced rate of 0.2%, down from 0.4%, and real imports of other basic precious and non-ferrous metals edged up by just 0.04% compared to a 0.3% increase. On a positive note, approvals for housing units saw a rebound, rising by 0.5% in contrast to a previous marginal decline of 0.005%, and the real money supply increased by 0.1% after a 0.1% drop. Year-on-year, the leading index remained unchanged following a 0.6% increase in April. In parallel, the coincident index, which provides insight into current economic conditions, dipped by 0.1%, reversing the revised stagnation recorded in April.