KUALA LUMPUR, April 11 — Malaysia’s Industrial Production Index (IPI) improved to 3.6 per cent in February 2023 based on a year-on-year change against the same month in 2022, with January 2023 recording a modest 1.8 per cent growth against January 2022.
The rise by propelled by an accelerating manufacturing sector, said the Department of Statistics Malaysia (DOSM). The IPI statistics comprise three sectors, mining, manufacturing and electricity.
Chief Statistician Datuk Seri Mohd Uzir Mahidin said the February expansion was spearheaded by the manufacturing sector which rose by 4.9 per cent (January 2023: 1.3 per cent) and the electricity sector which rose by 1.1 per cent (January 2023: -4.3 per cent). However, the mining sector output declined marginally by 0.5 per cent in February 2023, after registering positive growth for eight consecutive months.
However, despite the year-on-year gains, on a month-on-month basis, the IPI continued to decline since December 2022, registering a negative 5.1 per cent in February 2023 (January 2023: -2.3 per cent), he said in a statement.
Elaborating further, he said export-oriented industries output, which accounted for two-thirds of manufacturing output, expanded by 3.9 per cent in February 2023 versus 0.6 per cent in January 2023, bolstered by the manufacture of vegetable and animal oils and fats production which soared by 21.5 per cent (January 2023: 8.3 per cent) and computer, electronics and optical products which grew by 6.4 per cent (January 2023: 0.8 per cent).
Domestic-oriented industry growth outpaced national manufacturing growth by registering 7.0 per cent in February 2023 (January 2023: 2.7 per cent).
The increase was contributed by the positive momentum recorded in all groups except for the manufacture of beverages which posted a decrease of 2.3 per cent in February 2023.
The manufacture of fabricated metal products, excluding machinery and equipment, and the manufacture of food processing products propelled the domestic-oriented industry growth with an 8.9 per cent expansion (January 2023: 1.5 per cent) and 8.5 per cent (January 2023: 0.4 per cent), respectively.
The manufacturing sector contracted for the third month to record a negative 3.9 per cent in February 2023.
In mining, February’s production edged down by 0.5 per cent influenced by a slight 0.3 per cent decline in the crude oil and condensate index (January 2023: 8.0 per cent) while the natural gas index fell by 0.5 per cent (January 2023: 4.5 per cent).
February’s mining index was negative 9.6 per cent versus a positive 1.7 per cent growth in January 2023.
January – Feburary 2023’s IPI recorded a 2.7 expansion against the same period in 2022.