KUALA LUMPUR (July 10): Malaysia’s May industrial production index (IPI) saw a 4.5% year-on-year (y-o-y) increase, supported by growth in all three components of the output gauge.

Figures released by the Statistics Department today showed mining and manufacturing production grew 9% and 3.2% respectively. Electricity output rose 1.2%.

"The mining sector output recorded a strong growth of 9% in May 2015 compared to the same month in 2014. This expansion was mainly driven by the increase of crude oil index at 18.8%.

"The natural gas index, however, declined by 1.9%," the department said.

From January to May, the IPI grew 5.6% from a year earlier as all three sectors of the index rose.

Mining output grew 8.1% while manufacturing production expanded 4.8%. Electricity output rose 3.2%.

The May IPI's 4.5% y-o-y increase compared to the 4% growth in April, according to the department.

The May industrial output growth had beaten market forecast of a 3% rise, based on a Reuters survey.

Yesterday, Reuters reported that Malaysia's industrial production in May likely grew at a slower pace than the previous month due to sluggish external demand and weaker domestic consumption.