• IPI increased by 4.0% yoy; 3.2% mom
• Stronger production from all components

• Stable growth in manufacturing sales

• Productivity increased by 5.2% yoy

• Global semiconductor registered fifth straight month of negative sales

• Global IPI remain weak

• Strong activity growth signals a pick-up in GDP growth in 2Q

Steady industrial production growth in May

Malaysia’s industrial production index (IPI) rose by 4.0% yoy in May, the same pace as in April and remained the biggest yearly rise in industrial output in six months. The growth in May was driven by the increase in all indices: electricity (May: 5.7%; Apr: 5.8%; Mar: 4.8%; Feb: 4.9%; Jan: 7.8%), manufacturing (May: 4.2%; Apr: 4.3%; Mar: 4.1%; Feb: 3.7%; Jan: 4.2%) and mining (May: 3.0%; Apr: 2.3%; Mar: -0.2%; Feb: -5.0%; Jan: -0.9%).

On monthly basis, the IPI increased 3.2% in May, after a 2.7% declined in April due to the increase in all indices: manufacturing (May: +3.1%; Apr: -2.0%; Mar: +9.6%; Feb: -10.2%; Jan: +1.6%), electricity (May: +2.4%; Apr: -0.2%; Mar: +14.0%; Feb: - 10.6%; Jan: +3.3%) and mining (May: +3.8%; Apr: -5.9%; Mar: +16.4%; Feb: -16.2%; Jan: -0.9%). However, in seasonally adjusted terms, IPI in May fell by 0.3%, the first monthly drop in three months, swinging from a 2.0% rise in April due to the decrease in mining index (-1.4%). Meanwhile, the indices for electricity and manufacturing increased by 0.4% and 0.2% respectively. 

The IPI of Malaysia for the period of January to May 2019 recorded a growth of 3.2% yoy. The increase was contributed by the growth in electricity sector (5.8%) and manufacturing sector (4.1%). Meanwhile, the mining sector declined by 0.1%.

Source: BIMB Securities Research - 15 Jul 2019