Malaysia’s Logistics Growth Index (LGI) edged down to 53.2 in September 2026, its lowest reading in two months, as softer new orders and business volumes weighed on logistics activity despite continued expansion.
The index, published by the World Research Institute (WRI), slipped 0.1 point from 53.3 in August but remained comfortably above the 50-point threshold separating expansion from contraction.
Malaysia also outperformed regional and global benchmarks, with the Asia-Pacific Logistics Index registering 52.3 and the World Logistics Index standing at 51.6.
The country ranked 13th among 42 economies surveyed globally and seventh among 16 Asia-Pacific economies, reflecting its relatively resilient logistics sector.
WRI said the moderation was primarily driven by weaker performance in the Business Volume Index, as softer new orders weighed on overall logistics activity.
Nevertheless, the September reading remained above Malaysia’s three-month average, suggesting that underlying sector momentum continued despite the marginal slowdown.
WRI Principal Economist Stephen Poh said Malaysia’s trade remained strong in September, supported by record trade values and exports, particularly electronics, which helped sustain warehousing activity.
However, declining new orders and output, alongside global port congestion that constrained vessel capacity, contributed to the softer index reading.
The latest figures suggest Malaysia’s logistics sector continues to benefit from resilient trade activity, although weakening demand and global shipping bottlenecks could limit near-term growth momentum.
