PETALING JAYA: Malaysia’s Industrial Production Index (IPI) increased by 4.2% in October compared with the same month last year, driven by the growth seen in all segments, namely mining, manufacturing and electricity, according to the Department of Statistics.
The manufacturing sector grew 5.4% in the month under review compared with October 2017, while electricity and mining grew at 2.1% and 1.4% respectively, contributing to the overall growth in IPI.
MIDF Research forecasts the IPI to expand at a steady pace in the fourth quarter of 2018 and in 2019 amid tapering trade tension effects, strong global demand, optimistic business environment and volatility risks in global commodity prices and currencies.
“As guided by the recent Business Tendency Survey data, we believe the IPI will be growing between 3%-4% during the first half of 2019.” For the whole of 2019, IPI is estimated to grow at 2.9%.
Malaysia’s manufacturing sales for October 2018 grew 10.2% to RM73.1 billion as compared with the RM66.3 billion reported a year ago, said the Department of Statistics.
The growth was attributable to the increase in transport equipment & other manufactures products (13.3%); electrical and electronics products (11.5%); and petroleum, chemical, rubber and plastic products (11.5%).
Meanwhile, the total number of employees engaged in the manufacturing sector in October 2018 was 1.07 million, an increase of 2.2 % or 23,042 compared with 1.05 million in October 2017.
