Malaysia IPI Grew Slower In December To 3% Supported By Mining And Manufacturing

The Department of Statistics Malaysia released the latest Industrial Production Index (IPI) which indicated a growth of 3.0 percent in December 2022 after recording an increase of 4.8 percent in November

The expansion in December 2022 was propelled by the Mining index (4.1%) and the Manufacturing index (3.0%). Meanwhile, the Electricity index turned downward to a negative 1.1 percent during the month. In terms of month-on-month comparison, the IPI weakened by 0.6 percent as against the expansion of 0.9 percent registered in the previous month.

The output in the Manufacturing sector expanded by 3.0 percent in December 2022 driven by Electrical & Electronics Products (7.2%); Transport Equipment & Other Manufactures (8.5%); Food, Beverages & Tobacco Products (3.4%); and Non-metallic Mineral Products, Basic Metal & Fabricated Metal Products (2.2%). Smaller declines were recorded in the output of Petroleum, Chemical, Rubber, and Plastic Products (-0.9%); and Textile, Wearing Apparel, Leather Products & Footwear (-0.5%).

Meanwhile, the production of Wood Products, Furniture, Paper Products & Printing continued to decline by 4.3 percent
(November 2022: -3.6%). The production of export-oriented industries rose by 2.7 percent (November 2022: 5.1%) while domestic-oriented industries increased by 3.8 percent (November 2022: 4.3%). The expansion in the export-based industry was anchored by the manufacture of computers, electronics & optical products; and the manufacture of coke & refined petroleum products. In the meantime, the growth of the domestic-oriented industry was underpinned primarily by the manufacture of motor vehicles, trailers & semitrailers; and the manufacture of fabricated metal products, except machinery & equipment. The output in the Mining sector advanced by 4.1 percent in December 2022 after an expansion of 6.1 percent in November

The growth of this sector was supported by the increment of 5.1 per cent in the Crude Oil & Condensate index and 3.3 per
cent in the Natural Gas index. As compared to the previous month, the Mining index grew by 1.1 percent (November 2022:
3.5%).

Overall for the final quarter of 2022, the IPI grew at a slower rate of 4.1 percent (Q3 2022: 12.2%) as compared to the same quarter of the previous year. The increase was attributed to the growth in Manufacturing (4.0%) and Mining (6.2%) indices.

Meanwhile, the Electricity index edged down by 0.5 percent. Analysing the performance of 2022, the IPI expanded by 6.9 percent as compared to the same period of the previous year (2021: 7.2%). The increment in the Manufacturing index (8.2%); Electricity index (4.5%); and Mining index (2.8%) supported the growth in 2022.

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