Malaysia's leading index of economic indicators rose 3.1% in December on year, and "continues to show encouraging progress," reported the nation's Department of Statistics on Tuesday.

A robust performance of Malaysia's publicly held industrial enterprises and strength in semiconductor imports played key roles in the December rise of the leading economic indicator, said the department.

The December "performance was supported by continued strength in the Bursa Malaysia Industrial Index which surged 27.1% (on year) and the real imports of semiconductors, which rose by 21.6% (on year)," said the Department of Statistics.

The leading economic index had risen by 2.5% on year in November, and 1.6% in October, thus indicating gathering strength in the series, reported the department.

The leading index in December signals "an optimistic economic prospect in the near term," according to the Department of Statistics.

In addition, Malaysia's coincident economic index, a measure a current performance, rose 1.8% on year in December, while the industrial production index "demonstrated robust performance" with a 4.6% rise, added the department.

Malaysia's leading index appears roughly in line with a recent forecast made by the nation's central bank, Bank Negara Malaysia.

In late January, the central bank forecast the nation's gross domestic product (GDP) would expand by between 4.5% and 5.5% on year in 2025, after having grown 5.1% in 2024, and a lesser 3.6% in 2023.