Friday 29 Mar 2024
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KUALA LUMPUR (Jan 10): Malaysia’s industrial production index (IPI) rose 2% year-on-year (y-o-y) in November 2019, higher than the 0.3% y-o-y growth seen in October 2019, driven by improvements across all segments of manufacturing, electricity and mining.

In a statement today, the Statistics Department Malaysia reported that the manufacturing sector output rose by 2.5% y-o-y in November 2019, after recording a growth of 2.2% in October 2019.

“The major sub-sectors contributing to the increase in November 2019 were transport equipment and other manufactures (4.3%), non-metallic mineral products, basic metal and fabricated metal products (3.7%) and petroleum, chemical, rubber and plastic products (2.0%),” the department said.

Meanwhile, the mining sector output grew by a marginal 0.5% y-o-y in November 2019. The statistics department attributed the positive growth to an increase in the natural gas index (3.7%).

On the other hand, the crude oil and condensate indexes declined by 3.3%.

In addition, the electricity sector output increased by 1.6% y-o-y in November 2019, the department said.

RHB Investment Bank economist Ahmad Nazmi Idrus said Malaysia's manufacturing Purchasing Managers’ Index (PMI) rose to a 15-month high in December 2019 – its fastest pace since September 2018, suggesting a further recovery in production.

"In addition, the resolution of the US-China Phase One deal may spell an end to hostilities and improve business confidence," he said in a note to investors today.

Ahmad Nazmi said he is maintaining his 2020 gross domestic product at 4.3% until there is a significant improvement in outlook. "For 2020, the data so far remains bleak, especially on the external side, as well as lower private consumption. Consequently, we maintain growth at 4.3% for now, but will keep an eye out over domestic and external developments."

 

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