Malaysia’s Economy Shows Promising Growth, LI Rises 3.1 Pct In Dec 2024

KUALA LUMPUR, Feb 26 (Bernama) -- Malaysia’s economy is expected to continue promising progress in the near term with the leading index (LI) accelerated to 3.1 per cent year-on-year (y-o-y) in Dec 2024 compared to 0.4 per cent in December 2023.

In a note today, MIDF Amanah Investment Bank Bhd said that the annual growth was mainly driven by the strong performance in the Bursa Malaysia Industrial Index, surging by +27.1 per cent y-o-y, while real imports of semiconductors rose 21.6 per cent y-o-y.

“Similarly, on a monthly basis, the LI grew, albeit at a softer pace of 0.8 per cent month-on-month (m-o-m) (Oct-2024: 1.3 per cent m-o-m).

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“The latest result marked two consecutive months of positive growth, with four of the index's seven components showing an upward trend. Key drivers to the index growth were the number of housing units approved (0.3 per cent m-o-m), the Bursa Malaysia Industrial Index (0.4 per cent m-o-m) and real money supply (0.2 per cent m-o-m),” it said.

Meanwhile, the investment bank noted that the index performance was weighed down by a decline in the expected sales value for manufacturing (-0.1 per cent m-o-m) and the number of new companies registered (-0.04 per cent m-o-m).

“On the other hand, the coincident index (CI), which gauges overall current economic performance, posted growth of 1.8 per cent y-o-y, reaching 126.1 points (Dec-2023: 123.9 points).

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“This was contributed by the strong performance in the industrial production, which grew 4.6 per cent y-o-y (Nov-2024: 3.6 per cent y-o-y),” it said.

It added that while the LI remains below the 100.0-point threshold, indicating a slower long-term trend, Malaysia's economy is expected to sustain growth, supported by strong economic fundamentals, including resilient domestic spending and a positive labour market.

-- BERNAMA