Malaysia’s August industrial production index up 13.6%, beating expectations

MALAYSIA’S industrial production index (IPI) for the month of August rose 13.6 per cent year on year (yoy), supported by robust mining, manufacturing and electricity output.

The increase is greater than the 9.5 per cent average expectation from a Reuters survey of 12 economists. It is also a larger increase than the 12.5 per cent growth reported in July.

In the latest IPI report released by Malaysia’s department of statistics on Wednesday (Oct 12), the country’s manufacturing output component grew 15.2 per cent. The electricity sector grew 10 per cent, the mining sector 8 per cent.

Within manufacturing, the main contributors were transport equipment and other manufacturers products (53.6 per cent), electrical and electronics products (19.2 per cent) as well as non-metallic mineral products, basic metal and fabricated metal products (13.6 per cent).

Domestic-oriented industries recorded a growth of 22.5 per cent, while the export-oriented industries grew 12.4 per cent.

“The growth of the mining sector was spearheaded by the increment of 8 per cent in (the) natural gas index and crude oil and condensate index, respectively,” said the report.

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Malaysia’s exports up 48.2% in Aug, exceeding economists’ forecast

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For the first eight months of 2022, Malaysia’s IPI increased 7.5 per cent yoy. This was supported by manufacturing, which rose 9.6 per cent, electricity (6.5 per cent) and mining (0.2 per cent).