JAN IPI GROWTH SEEN HIGHER AT 5.8PC

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

New Straits Times - - Business - RUPA DAMODARAN bt@me­di­aprima.com.my

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.

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