The Leading Index (LI) registered a growth of 0.6 per cent to attain 111.6 points in February 2023 from 110.9 points in February 2022, according to the Department of Statistics Malaysia (DOSM).
Chief statistician Malaysia Datuk Seri Mohd Uzir Mahidin said in a statement that the growth was underpinned significantly by the good performances in the number of housing units approved, real imports of other basic precious and other non-ferrous metals and the number of new companies registered.
“The trend is in line with the monthly change of LI which posted a growth of 2.9 percent in February 2023 against a negative 1.5 per cent in the previous month,” he said.
LI is a tool to anticipate economic upturns and downturns in an average of four to six months ahead
Mohd Uzir said that looking at the smooth long-term trend in February 2023, the LI recorded better index points than that of the previous month which was 99.41 points (January 2023: 98.61 points).
“Although it remained below the trend of 100 points, the economic outlook is expected to improve in the near term supported by domestic demand and resilient policy measures under Budget 2023,” he said.
Mohd Uzir said the Coincident Index (CI), which reflects the current economic condition, showed better year-on-year growth by registering 121.6 points in February 2023 as against 116.3 points in February 2022.
The increase, he said, was contributed by all components, mainly real contributions and the Employees Provident Fund of 16.8 per cent.
