DOSM: Labour market stability, high‑tech investments support Malaysia’s economic outlook

KUALA LUMPUR, Sept 25 — Malaysia's Leading Index (LI) climbed 1.1 percent year-on-year in July 2026, reaching 115.3 points, up from 114.0 points in the same period last year, according to the Department of Statistics Malaysia (DOSM). The main contributors to the rise were a 24.1 percent surge in real imports of non-ferrous metals and a 17.4 percent increase in real imports of semiconductors. However, the overall performance waned slightly due to a more stable performance in other sectors, notably new company registrations.

On a month-to-month basis, the LI grew 0.3 percent, driven by a 0.1 percent rise in real money supply (M1) and a similar increase in real imports of semiconductors. Despite the LI's smoothed long-term trend remaining below 100.0 points, the Department of Statistics Malaysia anticipates a resilient domestic economic outlook. This forecast is primarily backed by a consistently low unemployment rate and a stable labour market.

Moreover, the influx of high-impact investments in the high-tech sector, coupled with strong global demand for semiconductor and electrical and electronics (E&E) products, is expected to safeguard Malaysia's economic stability amidst external market fluctuations, the DOSM added.

The Coincident Index (CI), which captures current economic developments, also rose 1.7 percent year-on-year to 131.5 points in July 2026, from 129.3 points in July 2025. This growth was fueled by a 5.8 percent jump in real Employees Provident Fund (EPF) contributions and a 4.5 percent increase in the Industrial Production Index. On a monthly basis, the CI dipped 0.1 percent, primarily due to a 0.2 percent fall in real EPF contributions and a decline in manufacturing capacity utilisation.