KUALA LUMPUR, March 12 — The Industrial Production Index (IPI) rebounded to 4.3 per cent year-on-year in January 2024, spurred by expansion in all sectors, according to the Department of Statistics Malaysia (DoSM).
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the IPI rebounded to 4.3 per cent in January 2024 after recording a slight drop of 0.03 per cent in December 2023, marking the highest growth registered since May 2023.
“The increase was spearheaded by a surge of 3.7 per cent in the manufacturing sector compared to the negative 1.4 per cent recorded in the previous month.
“Additionally, the mining sector sustained its upward trend by registering 5.0 per cent (December 2023: 4.1 per cent) while the electricity sector accelerated at a faster pace of 8.3 per cent (December 2023: 4.1 per cent).
In comparison with the preceding month, the IPI improved by 2.0 per cent against the negative 1.3 per cent recorded in the previous month, he said in a statement today.
Mohd Uzir said the turnaround of 3.7 per cent in the manufacturing sector in January 2024 was driven by the vibrant performance of domestic-oriented industries which picked up to 8.0 per cent (December 2023: 4.2 per cent).
While export-oriented industries returned to positive growth of 1.6 per cent after seven consecutive months in negative territory (December 2023: -4.1 per cent).
The expansion in domestic-oriented industries was primarily reinforced by a double-digit growth in the manufacture of motor vehicles, trailers and semi-trailers which registered an increase of 12.1 per cent, followed by the manufacture of fabricated metal products except machinery and equipment at 11.9 per cent.
In addition, the manufacture of food processing products also contributed with a growth rate of 8.5 per cent, he said.
Meanwhile, MIDF Research said it is confident that Malaysia can achieve a stronger 3.7 per cent growth in the industrial production index (IPI) this year compared to the 1.1 per cent recorded in 2023.
The optimism is supported by the recovery in external demand and pick-up in global manufacturing activities.
In a note today, the research house said IPI growth rebounded to 4.3 per cent year-on-year in January 2024, the fastest growth since May 2023.
The performance largely reflected the rebound in the manufacturing sector output such as export-oriented products and motor vehicles.
“Manufacturing sales also rebounded to positive annual growth.
“The value of sales of manufactured goods registered a rebound and grew at 3.2 per cent year-on-year in January 2024 versus a contraction of 4.2 per cent in December 2023, driven by higher sales of motor vehicles, computers & peripherals, chemical & chemical products and consumer electronics,” it noted.
The Department of Statistics Malaysia (DoSM) today said the mining sector also sustained its upward trend registering a growth of 5.0 per cent, while the electricity sector accelerated at a faster pace of 8.3 per cent.
In comparison with the preceding month, the IPI improved by 2.0 per cent compared with the negative 1.3 per cent recorded in the previous month.
— Bernama
