Malaysia’s industrial production index (IPI) rose by 2.0% yoy in November, after a 0.3% gain in October, which was the weakest reading in nearly four years. November’s growth was the strongest yearly increase in industrial output since June 2019. The growth in November 2019 was driven by the increase in the index of manufacturing (2.5%), electricity (1.6%) and mining (0.5%).
However, on monthly basis, the IPI returned to negative growth after +3.2% expansion in October. The IPI declined 1.1% mom in November driven by the decrease in the index of manufacturing (Nov: -2.7%; Oct: +1.9%; Sep: +0.1%), and electricity (Nov: -2.8%; Oct: +0.9%; Sep: -2.7%) whilst output from mining decelerated (Nov: +4.9%; Oct: +8.8%; Sep: -1.0%). In a seasonally adjusted terms, IPI in November increased by 1.8% due to the increment recorded in all indices: mining index (5.5%), electricity index (1.2%) and manufacturing index (0.8%).
The IPI of Malaysia for the period of January to November 2019 recorded a growth of 2.4% as compared to the same period of the previous year. The increase was contributed by the growth in electricity and manufacturing sector with 3.5% respectively. Meanwhile, the mining sector declined by 1.4%.
Source: BIMB Securities Research - 13 Jan 2020