KUALA LUMPUR, March 26 — Despite concerns over slower economic growth in the early part of 2021, Malaysia’s broader economic outlook is expected to continue recovering as implied by the improvement in the Leading Index (LI) recently, said MIDF Amanah Investment Bank Bhd Research (MIDF Research).

Data released by the Department of Statistics Malaysia (DoSM) on Wednesday showed that the country’s LI rose at a faster rate of 8.2 per cent year-on-year (y-o-y) in January 2021 from 7.6 per cent y-o-y in December 2020, indicating that Malaysia’s near-term economic prospects remain upbeat.

"January’s LI reading was the highest since September 2020, and this was supported by the consistent increase in Bursa Malaysia Industrial Index, particularly the healthcare, transportation and logistics indices,” said MIDF Research in a note today.

The research house said the easing of movement control restrictions, ongoing Covid-19 vaccinations, as well as the additional fiscal stimulus also boosted expectations for further recovery in the economy.

"However, concerns remain, particularly on the situation surrounding the Covid-19 pandemic as a potential new wave of infections may affect economic recovery,” it said. — Bernama