In the latest released economic indicator by DoSM (Department of Statistics of Malaysia) dated 8 July, the nation’s Industrial Production Index (IPI) grew 4.1% in May 2022, driven by electrical and electronics (E&E) products, of which has increased at a whopping 15.5%.
As a year-on-year comparison, the IPI increased by 4.1% as compared to May 2021. The expansion of IPI was contributed by the manufacturing and electricity sectors, which recorded 6.9% and 2.8% increases respectively.
To recap, IPI is a measure of the rate of change in the production of industrial commodities in real terms over time for Manufacturing, Mining and Electricity Sectors. It is measured based on volume changes in production. IPI are the overall index from the Index of Mining, Manufacturing and Electricity. IPI give the overview of the current trend of industrial activities and used for economic analysis.
The mining sector, in contrast, recorded a shrinkage of 4.9%, year-on-year. The deterioration was affected by the fall of 6.7% in crude oil and condensate index and downturn of 3.6% in natural gas index.
The manufacturing sector output based on year-on-year comparison increased by 6.9% in May 2022 after recorded a print of 6.2% growth in April 2022. The main subsectors contributed to the growth in manufactures products (12.4%) and non-metallic mineral products, basic metal and fabricated metal products (5.2%).
Simultaneously, domestic-oriented and export-oriented industries recorded a growth of 8.7% and 6.1% respectively.
The electricity sector output rose 2.8% in May 2022 as compared to May 2021.
