Man­u­fac­tur­ing, min­ing, elec­tric­ity lift Jan­uary IPI

New Straits Times - - Business | News - Rupa Damodaran

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.

BLOOMBERG PIC

The min­ing sec­tor out­put grew at a slower pace of 1.1 per cent in Jan­uary.

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