Malaysia’s IPI eases 2.2% in June 2023 – DoSM

KUALA LUMPUR: Malaysia’s Industrial Production Index (IPI) fell 2.2 per cent year-on-year (y-o-y) in June 2023, attributed to a contraction in the manufacturing and mining sectors, according to the Department of Statistics Malaysia (DoSM).

In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said the manufacturing sector saw a decline of 1.6 per cent in June (May 2023: +5.1 per cent) while the mining sector recorded negative 6.4 per cent (May 2023: +2.9 per cent).

The output of the Electricity sector, meanwhile, moderated to 2.8 per cent as against 5.9 per cent recorded in the preceding month.

“In June 2023, the IPI returned to record a contraction, declining by 2.2 per cent y-o-y in contrast to a positive growth 4.8 per cent registered in May 2023.”

On a month-on-month comparison, the IPI grew by 2.2 per cent as compared to 7.3 per cent registered in the previous month, he said.

Mohd Uzir said the deterioration in the manufacturing output in June 2023 was influenced primarily by the decline of 3.9 per cent in export-oriented industries.

“It was the second contraction in export-oriented industries within the year, following the initial decline in April 2023. The decline in export-oriented industries in June 2023 was mainly due to decreases in the manufacture of coke and refined petroleum products by 10.8 per cent and the manufacture of computer, electronics and optical products by 4.0 per cent,” he said.

The contraction was also in line with the country’s export performance which dropped by 14.1 per cent in June 2023.

Mohd Uzir said the output in the mining sector dropped by 6.4 per cent in June 2023, registering the lowest growth rate since May 2022.

“The decline was weighed down by downturns in both natural gas and crude oil and condensate, at negative 7.8 per cent (May 2023: +4.5 per cent) and negative 4.5 per cent (May 2023: +0.6 per cent) respectively.

On a month-on-month comparison, the mining index shrank by 7.7 per cent as compared to the positive 7.6 per cent recorded in May 2023,” he said.

In comparison to the prior month, the Electricity index weakened by 5.3 per cent, contrasting with the positive growth of 9.3 per cent registered in May 2023, he added.

Overall, in the second quarter of 2023 (2Q 2023), the IPI registered a marginal decline of 0.3 per cent as compared to the 2.9 per cent growth recorded in the first quarter of 2023.

In 2Q 2023, the Mining sector decreased by 2.8 per cent, and the Manufacturing sector rose slightly by 0.1 per cent, while the Electricity generation increased by 2.8 per cent, continuing an upward trend for two consecutive quarters. – BK