According to Knight Frank Malaysia’s latest publication, the Real Estate Highlights 2nd half of 2021 (“REH”), the country’s Industrial Production Index (IPI), which read at 114.1 points as of 3Q2021, has continued to remain above the 100-point threshold since June 2020, supported by strong performance in the manufacturing and electricity sectors.
It said that during the first nine months of the year, the manufacturing index grew 9.6% year-on-year to record at 124.8 points while the mining and electricity indices also experienced the expansion of 2.3% and 1.6% to register at 90.3 points and 115.8 points respectively.
It said that the gradual easing of strict containment measures to curb the spread of infections has been positive to the country’s economy. The headline IHS Markit Malaysia Manufacturing Purchasing Manager’s Index (PMI) of 52.2 in 2021, above the 50-point threshold, is reflective of improving business and manufacturing conditions.
Executive Director of Research & Consultancy, Knight Frank Malaysia Judy Ong -shared: “The prolonged periods of COVID-19 lockdowns and restrictive movements have triggered digital transformation and e-commerce boom.
Malaysia’s e-commerce market is at an inflexion point and in 3Q2021, its income by establishments grew 17.1% year-on-year to RM279.0 billion (source: Department of Statistics Malaysia).
The country’s industrial market has seen steady growth in recent years largely due to a higher e-commerce penetration rate resulting in additional warehousing / logistics space requirements to meet the surge in last-mile delivery as well as the structural shift towards omnichannel retailing. It is anticipated that the momentum gained will continue into 2022 and beyond as demand continues to remain resilient. Additionally, Budget 2022 has a RM250 million allocation for the Shop Malaysia Online and the Go-eCommerce Onboarding campaigns.”
