KUALA LUMPUR: The economy is anticipated to see healthier prospects in the near future, as the leading index (LI) rebounded 0.6% in September 2021 against negative 2.3% in August, according to the Statistics Department.

       In a statement yesterday, chief statistician Datuk Seri Mohd Uzir Mahidin said the rebound of the LI can be attributed to the relaxation of economic restrictions in line with the transitional phases of the National Recovery Plan (NRP).

       “The LI recorded an increase of 0.6% to 110.5 points in September as compared to 109.8 points in the same month of the preceding year, after a decrease of 2.3% in August. “The expansion of the LI was primarily backed by the increment in real imports of semiconductors, driven by the encouraging demand of electronic integrated circuits.”

       Correspondingly, Mohd Uzir said the LI grew to 4% based on a monthly comparison.

       Chief statistician Datuk Seri Mohd Uzir Mahidin said the rebound of the LI can be attributed to the relaxation of economic restrictions in line with the transitional phases of the National Recovery Plan (NRP).

       “The growth was underpinned significantly by a better performance in real imports of other basic precious and other non-ferrous metals that increased 1.6% and real imports of semiconductors (1.1%),” he said.

       Overall, Mohd Uzir said the LI showed a better performance which anticipated a healthier economic prospect in the near future.

       “Moving forward, the announcement of the expansionary budget for 2022, with the theme of ‘A Prosperous Malaysian Family,’ is expected to minimise the economic pressure and bring the economic growth on track,” he said.

       The NRP was announced by former Prime Minister Tan Sri Muhyiddin Yassin in June.

       It is a four-phase exit strategy from the Covid-19 pandemic that was implemented when the country went into a lockdown in May, this year.

       The phase transitions were generally determined by how quickly the population could be vaccinated and how effectively each state could bring down the number of daily reported infections.

       The LI is a predictive tool used to anticipate an economic upturn and downturn in an average of four to six months ahead.

       It tracks real money supply, the Bursa Malaysia industrial index, real imports of semiconductors, real imports of other basic precious and other non-ferrous metals, number of housing units approved, expected sales value of manufacturing and number of new companies registered.

       Separately, Mohd Uzir said the performance of the Coincident Index (CI), which reflects the current state of the economy, showed a better year-on-year growth by registering 0.3% in September from a drop of 1.6% recorded in August.

       “In the meantime, the monthly change of CI increased 3.9% in the said month, supported by all CI components with the largest positive from the volume index of retail trade (1.5%),” said Mohd Uzir.