• IPI rebounded 2.5% yoy in September
• IPI grew in all sub-sectors except mining
• Production of the manufacturing sector expanded in September
• Manufacturing sales increased 11.6% yoy; up 6.9% mom in September
• Productivity increased 9.8% yoy in September
• 3Q Global Semiconductor Sales Increase 27.6% yoy
• Global industrial production grew at a slower pace
• Positive spill over effects towards production as the pace of recovery gathering steam

IPI rebounded 2.5% yoy in September

Malaysia’s industrial production index (IPI) rebounded to 2.5% yoy in September, reversing a 0.7% drop in the previous month. September’s IPI also marked the first growth after two months of contraction. The expansion of IPI was due to a higher production utilization rate, amid easing restrictions and higher vaccination rates. The expansion in IPI for September 2021 was attributable to the improvement in the index of manufacturing (+4.0%) and electricity (+0.4%) which outweighed the decline in mining (-3.0%).

On a monthly basis, the IPI in September expanded at a firm pace of 3.7%, driven by manufacturing and electricity output. The on-month recovery was in line with further reopening of the economy. The growth in both manufacturing output (+5.5%) and electricity (+1.6%) offset the decrease in mining (-2.9%). In seasonally adjusted terms, IPI in September 2021 rose by 4.1%. The positive growth was due to the manufacturing index (+4.9%) and electricity index (+6.6%), which offset the decline in the mining index (-0.5%).

The IPI for 3Q 2021 recorded a contraction of 1.1% compared to the same period of the previous year. This negative growth was caused by a decline of 3.1% in electricity, mining -2.2%, and manufacturing at -0.7%.

The IPI for the period of January to September 2021 recorded a growth of 7.6% compared to the same period of the previous year. This positive growth was driven by an increase of 9.6% in manufacturing, 2.3% in mining, and 1.6% in electricity.

Source: BIMB Securities Research - 10 Nov 2021