JAN IPI GROWTH SEEN HIGHER AT 5.8PC

Mining expected to be top contributor, with CPO output rising to 13pc, says analyst

FACTORY output for January is expected to be higher with a NST Business poll looking at an average 5.8 per cent pick-up in activities.

The Statistics Department will release the data today.

The Industrial Production Index (IPI), which tracks the pace in the manufacturing, mining and electricity activities, grew 4.8 per cent in December last year.

Standard Chartered Bank economist Edward Lee, however, expects the pace to be slower than that of the previous month, at 3.8 per cent.

“Mining would likely contribute the most to headline industrial production growth, with crude palm oil production increasing to 13.0 per cent year-on-year from 5.3 per cent in December.”

Malaysia’s exports rose 13.6 per cent year-on-year in January, the highest in 15 months, supported by exports of liquefied natural gas and petroleum products.

He said motor vehicle production eased to 0.2 per cent from 10 per cent in December, weighing on headline industrial production growth.

“Electronics production likely continued to boost industrial production growth, with production of computers and integrated circuits reporting double-digit growth of 16.1 per cent and 26.4 per cent, respectively, for last year,” Lee added.