Selangor Journal
An electronic production facility in a factory. — Picture via UNSPLASH

Industrial Production Index increases 5.8 pct in Dec 2021 — DOSM

KUALA LUMPUR, Feb 8 — The Industrial Production Index (IPI) increased 5.8 per cent in December 2021 as compared to the same month of the previous year, the Department of Statistics Malaysia (DOSM) said.

Chief statistician Datuk Sri Mohd Uzir Mahidin said the expansion of IPI was contributed by the increment of 8.4 per cent in the manufacturing index and 3.7 per cent in the electricity index but the mining index recorded a decline of 2.5 per cent.

“On a month-on-month basis, the IPI increased by 1.3 per cent driven by the manufacturing, mining and electricity indices,” he said in a statement today.

He said the manufacturing sector output increased by 8.4 per cent year-on-year in December 2021 after recording a growth of 11.3 per cent in November 2021.

“The main subsectors that contributed to the growth in the manufacturing sector in December 2021 were electrical and electronics products (18.2 per cent), food, beverages and tobacco products (10.3 per cent) and non-metallic mineral products, basic metal and fabricated metal products (5.3 per cent),” he said.

Simultaneously, he said the growth of the manufacturing sector was driven by both export-oriented industry (9.6 per cent) and domestic-oriented industry (5.7 per cent).

“The increase in export-oriented industries was mainly supported by the manufacture of computer, electronics and optical products and manufacture of vegetable and animal oils and fats,” he said.

He said the performance of the manufacturing sector was also in line with the encouraging growth of exports.

Meanwhile, he said the growth for the domestic-oriented industry was attributed to the manufacture of food products and basic metals.

“The manufacturing sector on a month-on-month basis increased 0.5 per cent as compared to November 2021 supported by higher capacity utilisation especially in the electrical and electronic products and petroleum, chemical, rubber and plastic products subsectors,” he said.

He said the decline of mining sector output in December 2021 as compared to the same period of the previous year was due to the 5.5 per cent decrease in crude oil and condensate index 0.2 per cent decrease in natural gas index.

However, he said the mining index registered an increase of 4.1 per cent as compared to the previous month.

He said the electricity sector output rose 3.7 per cent year-on-year in December 2021 while on the month-on-month comparison, the electricity index increased by 1.7 per cent.

Mohd Uzir said the IPI for the fourth quarter 2021 grew 6.9 per cent as compared to the same period of the previous year with the increase attributed to the growth in the manufacturing index (9.2 per cent) and electricity index (4.3 per cent) while the mining index contracted 0.8 per cent.

He said the IPI in 2021 recorded an expansion of 7.4 per cent as compared to 2020 influenced by the rise in all components including the manufacturing index (9.5 per cent), electricity index (2.3 per cent) and mining index (1.5 per cent).

Mohd Uzir said compared to the period before the occurrence of Covid-19 in 2019, IPI grew 2.7 per cent and the manufacturing index increased by 6.6 per cent.

“Subsectors which surpassed the manufacturing index in 2019 were electrical and electronics products (17.2 per cent), petroleum, chemical, rubber and plastic products (12.2 per cent), food, beverages and tobacco (0.2 per cent).

“While the subsectors that have not yet recovered were non-metallic mineral products, basic metal and fabricated metal products (-9.2 per cent), textile, wearing apparel, leather and footwear (-6.4 per cent), transport equipment and other manufacturers (-4.5 per cent) and wood, furniture, paper products and printing (-1.4 per cent),” he added.

— Bernama

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