Malaysia's Economic Future Gloomy? July Economic Indicators Index Falls 4.1%


 The Department of Statistics Malaysia (DOSM) shows that the country's Leading Economic Index grew 4.1% in July.

The reading, which measures the direction of the country's economy on average 4 to 6 months ahead, saw the July 2022 score at 109.5 points compared to 105.2 points for the same month in 2021.

This means that the growth of the Malaysian Economic Indicators Index grew by 4.1% on an annual basis during July, but it was down from the 5.3% recorded in June.

On a monthly basis, the reading of the Economic Indicator Index contracted by 2% during July 2022 compared to the 0.4% development in June.

The decrease factor as outlined by DOSM is due to the import of base precious metals and non-ferrous metals which recorded a decrease of -0.9% due to increased demand for platinum-based metals.

Here are the details of the Malaysian Economic Indicators Index data for the month of July.

Imports of base precious metals and non-ferrous metals contracted -0.9% in July compared to 0.6% in June.

Semiconductor imports grew -0.5% compared to -0.4%.

The number of new companies registered shrank -0.3% compared to 0.6%.

The number of approved housing units decreased -0.1% compared to 0.4%.

Real money supply, M1 fell -0.2% compared to 0.1%.

The Bursa Malaysia industrial index rose -0/1% compared to -0.6%.

In the meantime, according to DOSM, the decline does not affect the country's optimistic outlook when the long-term trend falls from above 100 points.