MANUFACTURING REVS UP NOV INDUSTRIAL OUTPUT

Manufacturing, mining and electricity performances contribute the most to 5pc increase

MALAYSIA’S Industrial Production Index (IPI) grew by five per cent year-on-year (yo-y) in November, underpinned by stronger growth indices, mainly in manufacturing, mining and electricity.

The Statistics Department said the output for manufacturing index increased 6.7 per cent, while both mining and electricity rose by 0.2 and 3.9 per cent, respectively.

MIDF Research said IPI growth exceeded expectations and was underpinned by robust manufacturing performance.

“We expect IPI growth of 4.3 per cent this year. The encouraging IPI growth trend in 2017 is expected to continue for 2018, given that robust external trade performance continues and a gradual increase in commodity prices will boost industrial activity in Malaysia,” it said yesterday.

It said manufacturing sector output increased 6.7 per cent yo-y in November, while several sub-sectors recorded y-o-y expansion, including petroleum, chemical, rubber and plastic products, electrical and electronic products and food, beverages and tobacco products.

However, the IPI remained unchanged at 3.4 per cent y-o-y in October.

For November, the IPI rose 1.9 per cent month-on-month ( m-om) due to the increase in manufacturing and electricity indices by 2.8 per cent and 0.8 per cent, respectively.

The mining index remained unchanged.

The department said Malaysia’s November manufacturing sales continued to post a strong growth of 10.9 per cent to RM66.6 billion compared with RM60.1 billion in the same period the year before.

The significant y-o-y increase in sales value for the period was due to the increase in electrical and electronic products (8.8 per cent), petroleum, chemical, rubber and plastic products (17.8 per cent) and non-metallic mineral products, basic metal and fabricated metal products (4.8 per cent).

Total employees engaged in the manufacturing sector in November last year increased 2.3 per cent to 1.05 million, from 1.03 million in November the year before. Salaries and wages increased 9.2 per cent, or RM297.2 million, to RM3.5 billion.

Sales value per employee also gained 8.4 per cent to RM63,186 compared with the same period the year before.