KUALA LUMPUR (Aug 9): Malaysia’s industrial production climbed faster than expected in June, led by higher manufacturing activities while mining output rebounded, official data released on Friday showed.

The industrial production index - which measures output from factories, power plants, and mines - rose 5.0% in June when compared to the same month in 2023, according to the Department of Statistics. That compares to the 4.2% increase predicted in a Bloomberg survey and May’s 2.4% year-on-year gain.

On a month-on-month basis, the index was up 4.8% in June, picking up from May’s pace of 3.5%.

The index is showing “positive momentum” for six consecutive months, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in a statement.

The latest reading dovetails with the print in China, South Korea, Vietnam, Taiwan and the US during the same month. However, industrial production declined in Singapore, Thailand, and Japan.

The key manufacturing sector rose 5.2% year-on-year in June, picking up from 4.6% rise in May, while mining expanded 4.9%, bouncing from a contraction of 6.9% in May. Electricity generation, meanwhile, was 3.5% higher, moderating from May’s 4.5% rise.

Domestic-oriented industries grew slower at 4.6% in June against May’s 6.4% growth, largely due to decline in the manufacture of motor vehicles, trailers and semi-trailers.

Export-oriented industries, meanwhile, grew 6.4%, in line with manufactured goods exports growth during the month.

Manufacturing sales meanwhile rose on an annual basis for the sixth consecutive month, gaining 5.9% to RM156.1 billion in June, the department said in a separate statement.

The rise was primarily driven by the electrical-and-electronics products sub-sector, which increased 5.9%, and supported by an 8.6% gain in the food, beverage and tobacco sub-sector.

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