Malaysia’s leading economic index fell 0.5% month-on-month in June 2025, reversing an upwardly revised 0.3% increase in May and marking the first decline following gains in the previous three months. Three of the seven components declined, led by real imports of semiconductors (-1.0% vs 0.02% in May), real imports of other basic precious and non-ferrous metals (-0.5% vs -0.2%), and new company registrations (-0.2% vs 0.2%). Housing unit approvals also slowed, rising only 0.1% after a 0.6% gain in the prior month. On the positive side, real money supply rose sharply (0.4% vs 0.1%), while expected manufacturing sales value (0.4% vs -0.1%) and the Bursa Malaysia Industrial Index (0.3% vs -0.2%) both rebounded. Year-on-year, the leading index slipped 0.2% after a 0.3% gain in May. Meanwhile, the coincident index, which reflects current economic conditions, grew 0.4% in June, recovering from a 0.1% drop in May.