Kuala Lumpur:Malaysia's Leading Index (LI) increased by 1.1 percent year-on-year in July 2026, reaching 115.3 points compared to 114.0 points in July 2025.

According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) attributed this growth mainly to the real imports of other basic precious and non-ferrous metals, which surged by 24.1 percent, and real imports of semiconductors, which rose by 17.4 percent. However, the department noted a slight softening in overall performance due to moderate activity in several components, notably in the number of new companies registered.

On a month-to-month basis, the LI saw an increase of 0.3 percent, primarily supported by real money supply (M1) and real imports of semiconductors, each contributing 0.1 percent to the growth.

Despite the smoothed long-term trend of the LI remaining below 100.0 points, DOSM expects the domestic economic outlook to stay resilient. This is strongly supported by a stable domestic labor market with consistently low unemployment rates. The department highlighted that high-impact investments in high-tech sectors and ongoing global demand for semiconductors and electrical and electronics products are key factors in maintaining Malaysia's economic stability amidst external market uncertainties.

Meanwhile, the Coincident Index (CI), an indicator of current economic conditions, increased by 1.7 percent year-on-year to 131.5 points in July 2026 from 129.3 points in the same month the previous year. This growth was driven by a 5.8 percent rise in real Employees Provident Fund (EPF) contributions and a 4.5 percent increase in the Industrial Production Index. However, on a monthly basis, the CI slightly declined by 0.1 percent, due to a 0.2 percent decrease in both real EPF contributions and capacity utilization in manufacturing.