• IPI slumped 32.0% yoy in April
   
• All three sub-indices deteriorated significantly

• Manufacturing sales tumbled in April

• Productivity decreased 30.8% yoy

• Global semiconductor sales dip in April

• Global industrial production plunged in April

• Prevailing condition is likely to be transitory as reopening of the economy is happening worldwide although at varying degree

IPI slumped 32.0% yoy in April

Malaysia's industrial production index plunged by 32.0% yoy in April after a 4.9% drop a month earlier. This was the steepest decline on record, as the Covid-19 pandemic took a huge toll on the sector. Deterioration of IPI in April was due to the significant decline in all indices which recorded a double digit drop.

On monthly basis, the IPI decreased at a faster pace of -30.5% as compared to -0.2% mom in March. Declined in manufacturing (Apr: -35.8%; Mar: -1.o%; Feb: -6.6%; Jan: +0.4%;) and electricity (Apr: -13.3%; Mar: -0.8%; Feb: -4.5%; Jan: +2.4%) accelerated at sharper pace whilst mining (Apr: -19.1%; Mar: +2.6%; Feb: -7.5%; Jan: +0.8%) returned to negative growth. In a seasonally adjusted terms, IPI registered a negative growth of 27.5% due to the decrease in all indices - mining (-12.5%), manufacturing (-33.7%) and electricity (-12.4%).

The IPI in the period of January to April 2020 dropped 7.7% as compared to the same period of the previous year. This negative growth was contributed by the decline in all sectors; manufacturing, mining and electric which decreased 8.4%, 6.2% and 5.3% respectively.

Source: BIMB Securities Research - 11 Jun 2020