Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator

Early detection of a turning point in a business cycle is crucial, as information about the changing phases in business cycles enables policy makers, the business community, and investors to cope better with unexpected events brought about by economic and business situations. The Malaysian economy i...

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Main Authors: Wong, Shirly Siew-Ling, Shazali, Abu Mansor, Puah, Chin Hong, Liew, Venus Khim-Sen
Format: Article
Language:English
Published: Munich University Library 2012
Subjects:
Online Access:http://ir.unimas.my/id/eprint/3210/
http://ir.unimas.my/id/eprint/3210/1/Forecasting%20malaysian%20business%20cycle%20movement%20%28abstract%29.pdf
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author Wong, Shirly Siew-Ling
Shazali, Abu Mansor
Puah, Chin Hong
Liew, Venus Khim-Sen
author_facet Wong, Shirly Siew-Ling
Shazali, Abu Mansor
Puah, Chin Hong
Liew, Venus Khim-Sen
author_sort Wong, Shirly Siew-Ling
building UNIMAS Institutional Repository
collection Online Access
description Early detection of a turning point in a business cycle is crucial, as information about the changing phases in business cycles enables policy makers, the business community, and investors to cope better with unexpected events brought about by economic and business situations. The Malaysian economy is fortunate to own a publicly accessible composite of leading indicator (CLI) that is presumed capable of tracing the business cycle movement and thus contributes to the creation of an early signaling tool for short-term economic forecasting.Certainly, the usefulness of this CLI in monitoring the contemporary economic and businesscondition in Malaysia will be empirically appealing to the nation. Even though the presentstudy can display the ability of the Malaysian CLI to trace the business cycle and offers advanced detection of business cycle turning points, the evidence of diminishing lead times foreseen by the CLI significantly weaken the fundamental function of a leading index as an early tool to signal economic vulnerability.
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spelling unimas-32102017-10-04T01:20:11Z http://ir.unimas.my/id/eprint/3210/ Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator Wong, Shirly Siew-Ling Shazali, Abu Mansor Puah, Chin Hong Liew, Venus Khim-Sen H Social Sciences (General) HB Economic Theory Early detection of a turning point in a business cycle is crucial, as information about the changing phases in business cycles enables policy makers, the business community, and investors to cope better with unexpected events brought about by economic and business situations. The Malaysian economy is fortunate to own a publicly accessible composite of leading indicator (CLI) that is presumed capable of tracing the business cycle movement and thus contributes to the creation of an early signaling tool for short-term economic forecasting.Certainly, the usefulness of this CLI in monitoring the contemporary economic and businesscondition in Malaysia will be empirically appealing to the nation. Even though the presentstudy can display the ability of the Malaysian CLI to trace the business cycle and offers advanced detection of business cycle turning points, the evidence of diminishing lead times foreseen by the CLI significantly weaken the fundamental function of a leading index as an early tool to signal economic vulnerability. Munich University Library 2012 Article PeerReviewed text en http://ir.unimas.my/id/eprint/3210/1/Forecasting%20malaysian%20business%20cycle%20movement%20%28abstract%29.pdf Wong, Shirly Siew-Ling and Shazali, Abu Mansor and Puah, Chin Hong and Liew, Venus Khim-Sen (2012) Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator. Munich Personal RePEc Archive. ISSN 2285-6803 https://mpra.ub.uni-muenchen.de/36649/
spellingShingle H Social Sciences (General)
HB Economic Theory
Wong, Shirly Siew-Ling
Shazali, Abu Mansor
Puah, Chin Hong
Liew, Venus Khim-Sen
Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator
title Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator
title_full Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator
title_fullStr Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator
title_full_unstemmed Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator
title_short Forecasting Malaysian Business Cycle Movement:Empirical Evidence from Composite Leading Indicator
title_sort forecasting malaysian business cycle movement:empirical evidence from composite leading indicator
topic H Social Sciences (General)
HB Economic Theory
url http://ir.unimas.my/id/eprint/3210/
http://ir.unimas.my/id/eprint/3210/
http://ir.unimas.my/id/eprint/3210/1/Forecasting%20malaysian%20business%20cycle%20movement%20%28abstract%29.pdf