Malaysia's annual IPI decline slows to 22.1% in May after record drop in April

Malaysia's May 2020 IPI tumbles 22.1% y-o-y

-A +A

On the other hand, the IPI in May 2020 surged 18.2% compared with April since the government allowed more industries to resume operations.

KUALA LUMPUR (July 9): Malaysia’s industrial production index (IPI) tumbled 22.1% year-on-year in May 2020 from a year earlier due to the decrease in all three components of the index.

In a statement today, the statistics department said the IPI’s manufacturing component fell 23.2%% while the mining and electricity segments declined 22.2% and 10.3% respectively.

“The output of the manufacturing sector in May 2020 contracted 23.2% on a year-on-year basis after recording [a] 37.2% decline in April 2020.

“The main sub-sectors contributing to the decrease in manufacturing sector in May 2020 were non-metallic mineral products, basic metal and fabricated metal products (-45.1%), transport equipment and other manufactures (-38.5%) and petroleum, chemical, rubber and plastic products (-24.3%).

“The output in the mining sector dropped 22.2% in May 2020 as compared to the same period of the previous year. The deterioration was due to the decrease in crude oil and condensate index (-22.2%) and natural gas index (-22.2%),” it said.

Meanwhile, the output in the electricity sector decreased 10.3% in May 2020 as compared to the same month of the previous year, said the department.

Notably, the annual contraction in May is smaller than the record 32% slump posted in April, which was attributed to the temporary closure of most manufacturing plants in compliance with the Movement Control Order (MCO).

On the other hand, the IPI in May 2020 surged 18.2% compared with the previous month since the government allowed more industries to resume operations in May, said Malaysia’s chief statistician Datuk Seri Mohd Uzir Mahidin.

“Based on month-on-month comparison, the increment of IPI in May 2020 was due to the increase in all indices; index of manufacturing (25.9%), index of electricity (13.7%) and index of mining (0.4%),” he said.