A general view shows the Petronas Twin Towers (C) and other commercial buildings as seen from KL Tower in Kuala Lumpur on September 8, 2022. (Photo by Mohd RASFAN / AFP)

Malaysia’s leading index rises to 111.3pts in August, growth momentum seen continuing

KUALA LUMPUR: Malaysia’s leading index (LI) rose 4 per cent year-on-year (y-o-y) to 111.3 points in August 2022, indicating that the economic growth momentum will continue moving forward, according to the Department of Statistics Malaysia (DOSM).

The LI, at 107.0 points in August 2021, is a predictive tool used to anticipate economic upturns and downturns an average of four to six months ahead.

DOSM said the growth in August this year was primarily supported by “sturdy gains in the number of housing units approved, real imports of other basic precious and other non-ferrous metals, as well as the number of new companies registered.”

“Compared to the previous month, the LI returned to positive growth of 1.6 per cent in August 2022 from negative 2.0 per cent, mainly propelled by the number of housing units approved (up 1.1 per cent) and real imports of semi-conductors (up 1.0 percent),” it said in a statement today.

Moving forward, the DOSM said “there are signs that Malaysia will continue to uphold its growth momentum as tracked by the long-term trend index where it remains (above) 100 points.”

“However, the economic growth performance depends on initiatives taken to address the cost of living issue and efforts in mitigating the effects of slowing global economic growth and trade activity,” it added. – Bernama