Kuala lumpur: Malaysia’s economic indicators strengthened in September 2025, with the Leading Index (LI) recording a 0.8 per cent increase to 113.3 points, up from 112.4 points a year earlier, according to the Statistics Department of Malaysia (DoSM).

According to BERNAMA News Agency, the LI provides an early indication of turning points in the business cycle and the near-term direction of the economy. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin noted that the positive trajectory was supported by strong double-digit growth in the number of new companies registered (16.0 per cent) and real imports of semiconductors (15.8 per cent).

Despite this growth, on a monthly basis, the LI declined by 0.5 per cent due to factors such as the number of housing units approved (-0.7 per cent) and real imports of other basic precious and other non-ferrous metals (-0.5 per cent). Even though the LI’s smoothed long-term trend remained below the 100.0-point level in September 2025, Mohd Uzir expressed that the Malaysian economy is expected to continue expanding, supported by sectoral diversity and a robust domestic foundation.

Mohd Uzir highlighted that positive trade performance, encouraging investment, and easing inflation continue to strengthen domestic resilience, serving as an effective buffer against global headwinds and alleviating cost-of-living pressures. In terms of the current economic situation, the Coincident Index (CI) sustained its positive growth, registering 2.6 per cent and reaching 129.1 points against 125.8 points in the corresponding month last year.

The increase in the CI reflects the strengthening of domestic economic activity, particularly through the real contributions from the Employees Provident Fund (EPF), which surged by 15.6 per cent, indicating stable wage and employment conditions. Simultaneously, Mohd Uzir noted that the CI’s monthly performance rebounded by 0.2 per cent after a 0.6 per cent decline in the previous month.

This recovery was driven by a 0.3 per cent increase in the volume index of retail trade, which recorded the highest rise among the components, highlighting resilient domestic economic activity, Mohd Uzir added.