• IPI expanded by 3.2% yoy and 1.3% mom

• Stronger production from electricity sector

• January manufacturing sales growth remain modest

• Productivity increased by 4.9% yoy

• Global semiconductor sales down 5.7% in January

• Growth in global IPI remains slow

• IPI to expand at a steady pace in 2019

Industrial production registered sustained growth in January

Malaysia’s industrial production index (IPI) expanded by 3.2% yoy in January, boosted by stronger electricity and manufacturing growth. The growth in January was supported by the increase in the index of electricity (Jan: 7.8%; Dec: 2.7%) and manufacturing (Jan: 4.2%; Dec: 4.4%). Meanwhile the index of mining recorded a decline of 0.9% from 1.0% in the previous month.

On monthly basis, the IPI grew by 1.3% in January, slightly slower when compared to 1.5% increase in December. The stronger monthly growth in the production of manufacturing (Jan: 1.6%; Dec: 0.5%) and electricity (Jan: 3.3%; Dec: 1.2%) mitigate the declined in the mining sector (Jan: -0.9%; Dec: +1.0%).

In seasonally adjusted terms, IPI in January increased by 1.2% mom due to the increase in all indices: electricity (4.0%), manufacturing (1.3%) and mining (0.3%).

Source: BIMB Securities Research - 15 Mar 2019