Malaysia's leading index up 2.2pct in August on semiconductor demand

KUALA LUMPUR: Malaysia's leading index rose 2.2 per cent year-on-year to 115.9 points in August, mainly driven by an 18.7 per cent increase in real imports of semiconductors.

However, the Statistics Department said overall growth was moderated by weaker performance in several components, particularly the number of housing units approved.

On a month-on-month basis, the leading index increased 0.2 per cent, supported by a 0.7 per cent contribution from the number of new companies registered.

"Looking ahead, the leading index's long-term trend for August moved above the trend level to 100.2 points, reflecting continued prospects for Malaysia's economic expansion," the department said in a statement.

"This outlook is supported by positive national economic growth projections, alongside a recovery in export-oriented industries and sustained global demand for semiconductors, particularly to meet artificial intelligence and technology investment requirements."

Meanwhile, the coincident index, which measures current economic performance, rose 1.9 per cent year-on-year to 131.4 points in August from 128.9 points a year earlier.

The increase was driven by a 9.9 per cent rise in real contributions to the Employees Provident Fund.

However, the index edged down 0.1 per cent month-on-month, following a 0.2 per cent decline in capacity utilisation in the manufacturing sector.