• IPI increased by 1.3% yoy and 0.7% mom

• Mining output revert to negative territory

• Manufacturing production picks-up

• Industrial Production grew 2.4% in 2019; up 1.3% in 4Q19

• Stronger manufacturing sales in December

• Productivity increased by 3.7% yoy

• Global semiconductor sales decrease 12% in 2019

• Global IPI remains disappointing

• Outlook for production and exports remain challenging

IPI growth softer in December

Malaysia’s industrial production index (IPI) grew at a softer pace in December driven by a fall in mining. Industrial production climbed 1.3% yoy in December, after an upwardly revised 2.1% rise in November. The growth in December 2019 was driven by the increase in the index of manufacturing (3.4%) and electricity (0.9%). Meanwhile index of mining recorded a decline of 4.9%.

On monthly basis, the IPI returned to positive growth after -1.1% drop in November. The IPI increased 0.7% mom in December driven by the increase in the index of manufacturing (Dec: +1.2%; Nov: -2.6%; Oct: +2.0%; Sep: +0.1%), and electricity (Dec: +0.5%; Nov: -2.8%; Oct: +0.9%; Sep: -2.7%) whilst output from mining declined (Dec: -0.9%; Nov: +4.9%; Oct: +8.8%; Sep: -1.0%). In a seasonally adjusted terms, IPI in December decreased by 0.4% due to the decline in mining index (-1.1%) and manufacturing index (-0.5%). Meanwhile, electricity index increased by 1.6%.

The IPI of Malaysia for the fourth quarter 2019 recorded a growth of 1.3% as compared to the same period of the previous year. The IPI for the year of 2019 recorded a growth of 2.4 per cent as compared to the previous year.

Source: BIMB Securities Research - 10 Feb 2020