MALAYSIA’S economy is expected to continue expanding, underpinned by resilient domestic demand, stronger investment activity and an improving international trade environment, according to the Department of Statistics Malaysia (DOSM).
DOSM said the country’s positive economic outlook was reflected in the Leading Index (LI), which maintained its upward momentum with annual growth of 1.3 per cent in June 2026.
The index rose to 114.8 points in June, from 113.3 points in the same month last year.
The LI provides an early indication of turning points in the business cycle and the direction of economic activity in the near term.
DOSM said the increase was driven mainly by a sharp rise in real imports of precious basic metals and other non-ferrous metals, which grew 35.1 per cent, alongside sustained growth in real imports of semiconductors, which rose 14.2 per cent.
"This scenario is in line with the strengthening of Malaysia's trade activity, particularly the continued demand for electrical and electronics (E&E) products," it said in a statement.
The latest figures were contained in DOSM’s Economic Indicators: Leading, Coincident & Lagging Indexes for June 2026 report released today.
However, DOSM said the overall performance was partly offset by declines in several components, particularly the number of new companies registered.
On a month-on-month basis, the LI recorded marginal growth of 0.02 per cent, mainly supported by a 0.8 per cent increase in real imports of precious basic metals and other non-ferrous metals.
"Looking ahead, the long-term trend of the smoothed Leading Index remains below 100.0 points," DOSM said.
For current economic activity, the Coincident Index (CI) strengthened by 2.6 per cent year-on-year to 131.6 points.
DOSM said the increase was supported by growth across all components, particularly real contributions to the Employees Provident Fund (EPF), which rose 16.0 per cent, and the Retail Trade Volume Index, which increased 4.1 per cent.
On a month-on-month basis, the CI also grew 0.3 per cent, supported by a 0.2 per cent increase in manufacturing capacity utilisation. - August 24, 2026
