Manufacturing, mining, electricity lift January IPI
KUALA LUMPUR: The Industrial Production Index (IPI) rose by 3.5 per cent in January, supported by manufacturing, mining and electricity output activities.
The Statistics Department said the expansion was supported by manufacturing (4.6 per cent), mining (1.1 per cent) and electricity (1.1 per cent).
In the case of the manufacturing sector output, the expansion was supported by the electrical and electronics (E&E) products (6.9 per cent), petroleum, chemical, rubber and plastic products (2.3 per cent), food and beverages, and tobacco (6.8 per cent).
The mining sector output grew at a slower pace of 1.1 per cent supported by the increase in natural gas index by 5.3 per cent although crude oil index declined by 2.3 per cent.
Alliance Bank described the January data, which came in below market expectations, as disappointing.
While the manufacturing sector output continues to be supported by E&E production, reflective of the E&E exports performance, the drag on IPI in January came from the mining sector, which contracted 3.2 per cent month-on-month in seasonally-adjusted term.
“We believe this reflects the reduced crude oil volume output by Petronas (up to 20,000 barrels per day effective January 17), in mutual agreement with the Organisation of the Petroleum Exporting Countries (Opec) and non-Opec producers to trim global crude oil supply.”
Last month, Malaysia’s manufacturing Purchasing Managers’ Index (PMI) improved to 49.4 on the back of higher output levels and a rise in production levels.
Meanwhile, the Statistics Department said manufacturing sector recorded RM61.2 billion in sales in January, an increase of 10.7 per cent compared with a year ago.