• Malaysia's IPI expanded by 3.6%
• Manufacturing sales value grew by 4.5%
• Manufacturing sector employment increased by 1.0%
• Manufacturing recovery in 2025 hinges on global demand and domestic support

Malaysia's Industrial Production Index (IPI) grew by 3.6% in November 2024, up from a revised 2.0% increase in the prior month and surpassing market expectations of a 2.6% gain, maintaining an upward trend for eleven straight months. The growth was driven by a 4.6% rise in Manufacturing (Oct: 3.3%) and a 3.9% increase in Electricity output (Oct: 1.9%). Meanwhile, the Mining sector contracted by 0.8%, improving from October’s -2.8%. On MoM basis, the IPI grew 0.5% from 1.7% in October 2024.

Export-oriented industries, comprising two-thirds of the Manufacturing sector, grew by 5.6% in November 2024 (Oct: 3.3%). This was spurred by an 8.8% rise in computer, electronics & optical products, 2.8% in coke & refined petroleum products, and 8.7% in plastic products. The YoY growth aligned with a 10.3% surge in exports. On MoM basis, the sector rebounded by 0.1% after a -1.4% decline in October.

However, the domestic-oriented industries grew modestly by 2.6% in November 2024, down from 3.3% in October. Growth was led by food processing products (5.6%), fabricated metal products (4.9%), and non-metallic mineral products (2.9%). On MoM basis, the sector rebounded by 3.0%, reversing October's -0.9% decline.

The Mining sector's output fell by 0.8% in November 2024, driven by a 3.8% decline in the Crude Oil & Condensate index (Oct: -7.5%), partially offset by a 1.2% rise in the Natural Gas index (Oct: 0.4%). %). On MoM basis, the Mining index grew marginally by 0.2%, following a 14.7% surge in October.

Source: BIMB Securities Research - 13 Jan 2025