KUALA LUMPUR (June 11): Malaysia’s industrial production index (IPI) grew 4% in April as compared to the same month last year driven by increase in outputs in manufacturing, mining and electricity, according to the Department of Statistics, Malaysia.

The manufacturing, mining and electricity indices recorded production growth of 4.1%, 3.9% and 3.0% respectively, according to the latest statistics.

The IPI figure was in line with economists’ expectation as polled by Reuters. However, the growth pace is slower than 6.9% year-on-year achieved in March.

However, in seasonally adjusted terms, the IPI in April 2015 recorded a marginal decrease of 0.4% month-on-month following decline of 1% in manufacturing, 1.9% mining and 1% electricity.

Under the manufacturing sector, output growth of 4.1% was recorded, driven by increases in petroleum, chemical, rubber and plastic products (3.6%), electrical and electronics products (4.0%) and food, beverages and tobacco (5.5%).

The mining sector registered growth of 3.9%, thanks to the increase of the crude oil index up 15%.

Reuters reported Malaysia's industrial production in April could increase at a slower pace of 4% from a year ago, after registering stronger than expected growth a month earlier.

The slower pace comes after the implementation of 6% goods and services tax (GST) took effect on April 1, hurting consumer spending and demand.

In addition, economists expect production to moderate, as exports in April fell more than the market expected, because lower gas prices hit shipments.