Which components moderated the monthly Leading Index in May 2026?

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The monthly Leading Index declined in May 2026 due to moderation in three of its components.

Malaysia's Leading Index (LI) saw a monthly decrease of 0.5 per cent in May 2026. This downturn was attributed to a moderation in three of the seven components that constitute the LI. While the specific components that moderated the monthly index are not explicitly detailed, the overall annual rise in the LI was driven by increases in real money supply, M1, and real imports of semiconductors.
Monthly Decline in Leading Index

The Leading Index registered a 0.5 per cent decline from April to May 2026. This monthly contraction occurred despite the LI showing a year-on-year increase of 0.8 per cent to 114.4 points in May 2026, compared to 113.5 points in May 2025. The moderation in three of the seven components led to this monthly decrease.
Drivers of Annual Leading Index Growth

The annual increase in the Leading Index was primarily influenced by positive performances in specific components. Notably, real money supply and M1 saw a significant increase of 9.2 per cent, while real imports of semiconductors rose by 2.7 per cent. These factors contributed to the overall positive year-on-year trend, indicating stable economic liquidity and expansion in electronic component-related production activities.
Long-Term Trend and Economic Outlook

Examining the smoothed long-term trend, the Leading Index remained below the 100.0 points threshold in May 2026. Despite the monthly moderation, the Malaysian economy is projected to remain resilient. This resilience is expected to be underpinned by stable domestic demand and the nation's capacity to adapt to global economic shifts and current technological advancements.

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Which components moderated the monthly Leading Index in May 2026?

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