Malaysia's leading economic index fell 0.3% month-on-month in February 2026, following an upwardly revised 0.7% decline in the previous month. It marked a second straight monthly drop, weighed down by real imports of semiconductors (-0.6% vs -0.02%), the number of companies registered (-0.6% vs -0.04%), and the number of housing units approved (-0.4% vs 0.1%). By contrast, sub-indices that increased included real money supply, M1 (0.7% vs -0.4% in January), the Bursa Malaysia Industrial Index (0.2% vs -0.2%), and real imports of other basic precious and non-ferrous metals (0.5% vs -0.1%). On an annual basis, the leading index rose 0.5%, easing from 0.6% in January, which was the highest reading in three months. Meanwhile, the coincident index, a gauge of current economic conditions, fell 1.4% month-on-month, reversing a 0.9% rise in January.