Malaysia’s IPI up 3.1% in February 2024

KUALA LUMPUR: The Industrial Production Index (IPI) grew by 3.1 per cent year-on-year (y-o-y-) in February 2024, induced by positive momentum in all sectors, according to the Department of Statistics Malaysia (DoSM).

In January 2024, the IPI increased by 4.3 per cent.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the moderation was primarily attributed to the slower output growth in the manufacturing sector, which grew by 1.2 per cent compared with 3.7 per cent in January 2024.

“Nevertheless, the mining and electricity sectors accelerated by 8.1 per cent (January 2024: 5.0 per cent) and 10.9 per cent (January 2024: 8.3 per cent) respectively,” he said in a statement today.

In comparison with the preceding month, the IPI declined by 6.3 per cent, in contrast to the positive 2.0 per cent recorded in the previous month.

Mohd Uzir said the rise of 1.2 per cent in the manufacturing output in February 2024 was supported by domestic-oriented industries, which expanded by 3.8 per cent (January 2024: 8.0 per cent).

He said the expansion in domestic-oriented industries was primarily driven by the manufacture of fabricated metal products, except machinery and equipment, which registered an increase of 8.4 per cent; followed by the manufacture of other non-metallic mineral products (5.1 per cent); and the manufacture of motor vehicles, trailers and semi-trailers at 2.9 per cent.

In comparison with the preceding month, the domestic-oriented industries declined by 7.5 per cent as opposed to an increase of 4.9 per cent in January 2024.

Meanwhile, the export-oriented industries returned to negative territory with a mild contraction of 0.1 per cent in February 2024 as against the positive growth of 1.6 per cent recorded in the previous month.

“The contraction was mainly due to the decrease in the manufacture of vegetable and animal oils and fats (-13.5 per cent); the manufacture of chemicals and chemical products (-2.8 per cent); and the manufacture of electrical equipment (-2.2 per cent),” he added.

Mohd Uzir pointed out that the expansion of 8.1 per cent in the mining sector in February 2024 was steered by an 11.9 per cent growth in natural gas production (January 2024: 6.6 per cent) while the crude oil and condensate output remained with a steadfast growth of 2.5 per cent (January 2024: 2.6 per cent).

Compared with January 2024, the mining index decreased by 6.9 per cent against the positive 3.1 per cent registered in the previous month, he added. – BK