Malaysia’s October IPI grows to its third-strongest level

KUALA LUMPUR: Malaysia’s Industrial Production Index (IPI) growth picked up to its thirdstrongest level this year, said RHB Research Institute Sdn Bhd.

The IPI increased by 4.2 per cent year- on-year (y- o-y) from 2.3 per cent in the previous month, driven by stronger growth in manufacturing activity and a rebound in mining output.

“As it stands, manufacturing output grew at a quicker pace of 5.4 per cent y- o-y in October from 4.8 per cent in September. The former was driven by higher output growth of electrical and electronics; petroleum, chemicals, rubber and plastics; and transport equipment and wood products.

“These were, however, offset somewhat by a slowdown in food manufacturing,” the research firm said.

RHB said mining activity output, however, bounced back to a growth of 1.4 per cent y- o-y in October after declining 6.2 per cent in the previous month, on account of a rebound in both crude oil and natural gas output.

Overall, industrial activities showed some signs of improving, in line with the run-up in export growth.

“We expect Malaysia’s economy to grow at a slower pace on 4.8 per cent in 2018 and 4.6 per cent in 2019, as the global environment turns more challenging amidst rising trade protectionism and interest rates,” it added. — Bernama