Department of Statistics Malaysia released the latest Industrial Production Index with a notable growth of 3.1 percent in March 2023 after recording an increase of 3.5 percent in February 2023.
The rise it said was driven by the expansion of the Manufacturing sector with 4.1 percent (February 2023: 4.8%) and rebounded by 0.8 percent in the Mining sector (February 2023: -0.5%). Nonetheless, the Electricity index turned downward to negative 0.3 percent during the month from positive growth of 1.1 percent last month. In terms of month-on-month comparison, the IPI turned around to a vigorous performance of 8.3 percent in March 2023 after a declining trend for three consecutive months.
The increase of 4.1 percent in the Manufacturing sector output in March 2023 was mainly backed by the domestic-oriented industries which rose by 5.0 percent (February 2023: 7.0%). The rise in the domestic-oriented industries was propelled by the Manufacture of motor vehicles, trailers & semi-trailers; and Manufacture of fabricated metal products, except machinery & equipment by 9.8 percent (February 2023: 9.5%) and 5.5 percent (February 2023: 8.5%) respectively. In the meantime, the export-oriented industries grew by 3.6 percent (February 2023: 3.7%), induced by the Manufacture of computers, electronics & optical products which rose by 7.1 percent (February 2023: 6.4%); and the Manufacture of vegetables and animal oils & fats which soared by 15.2 percent (February 2023: 18.3%). In comparison with the preceding month, the Manufacturing sector returned to the positive momentum to record 7.8 percent after registering a continuous decline since December 2022.
The output in the Mining sector advanced marginally by 0.8 percent in March 2023 driven by Crude Oil & Condensate index which bounced back to 5.0 percent from a negative 0.3 percent recorded in February 2023. On the other hand, the Natural Gas index declined further to 2.1 percent from negative 0.5 percent in the preceding month. A month-on-month comparison, the Mining index posted strong growth of 8.5 percent as compared to a decrease of 9.6 percent recorded in February 2023.
Electricity output however decreased marginally by 0.3 percent in March 2023 after recording an increase of 1.1 percent last month. As compared to the previous month, the Electricity index accelerated by double-digit growth of 14.2 percent as against a negative 0.9 percent recorded in February 2023.
The IPI moderated to 2.8 percent year-on-year as compared to 4.0 percent registered in the fourth quarter of 2022. During the period, the Manufacturing and Mining indices increased by 3.4 percent and 2.1 percent respectively; while the Electricity index continued to decline by 1.2 percent.
