• IPI increased by 3.1% yoy and 11.4% mom

• Stronger production from manufacturing and electricity

• Manufacturing sales growth remained modest

• Productivity increased by 3.8% yoy

• Global semiconductor sales slowed during 1Q19

• Global IPI cruising at slower speed

• Cautiously optimistic on IPI growth momentum

Growth in industrial production accelerated in March

Malaysia’s industrial production index (IPI) increased by 3.1% yoy in March, accelerating markedly from a 1.7% gain in February. The growth in March was supported by the increase in the index of electricity (Mar: 4.8%; Feb: 4.9%; Jan: 7.8%) and manufacturing (Mar: 4.1%; Feb: 3.7%; Jan: 4.2%). Meanwhile the index of mining fell much less (Mar: -0.2%; Feb: -5.0%; Jan: -0.9%).

On monthly basis, the IPI accelerated 11.4% in March, after a 11.6% decrease in February due to the increase in all indices: manufacturing (Mar: +9.6%; Feb: -10.2%; Jan: +1.6%), electricity (Mar: +14.0%; Feb: -10.6%; Jan: +3.3%) and mining (Mar: +16.4%; Feb: -16.2%; Jan: -0.9%). In seasonally adjusted terms, IPI in March grew 1.2% mom supported by growth in electricity (0.3%) and mining (6.4%) indices but manufacturing remain in contraction (-0.4%).

The IPI for 1Q19 recorded a growth of 2.7% yoy. The increase was contributed by the growth in electricity sector (5.8%) and manufacturing sector (4.0%). Meanwhile, the mining sector declined by 1.9%.

Source: BIMB Securities Research - 13 May 2019