1. Industrial output rose 5.0% compared to the same month of the previous year in June, which followed May’s 2.4% increase. The notable pickup was partly driven by faster growth in manufacturing output. In addition, mining and quarrying output rebounded.
2. As a result, the trend improved sizably, with the annual average growth of industrial production coming in at 2.0%, up from May’s 1.4% reading.
3. On a monthly basis, industrial output increased 0.7% in seasonally adjusted terms in June, which was below May’s 1.7% expansion.
4. Chief statistician Datuk Seri Mohd Uzir Mahidin said IPI growth accelerated further in June after registering 2.4 per cent in the preceding month, sustaining a positive momentum for six consecutive months.
5. Mohd Uzir said the output growth in the manufacturing sector led the way, with an increase of 5.2 per cent from 4.6 per cent in May.
6. It marked the highest growth seen since September 2022.
7. This was coupled with a turnaround in the production of the mining sector, growing 4.9 per cent, from a 6.9 per cent contraction in May 2024.
8. "In the meantime, the electricity sector rose by3.5 per cent from 4.5 per cent in May. "In comparison to the previous month, the IPI went up by4.8 per cent compared to 3.5 per cent recorded in May 2024," he said in a statement.
9. According to DOSM, the rise of 5.2 per cent in the Manufacturing sector in June 2024 was primarily reinforced by expansion in export-oriented industries at 5.4 per cent, marking the highest growth since September 2022.
10. It said the strong expansion of production was observed in the manufacture of coke & refined petroleum products which rebounded to 12.5 per cent and the manufacture of vegetable & animal oils & fats, which accelerated at a faster pace of 11.0 per cent.
11. "Additionally, the Manufacture of computer, electronics & optical products also supported the growth at 4.9 per cent in June 2024," it said.
12. Meanwhile, DOSM said performance in the export-oriented industries was in tandem with a positive growth in the country's manufactured goods exports in June 2024 (6.4 per cent).
13. In a month-on-month comparison, it said the export- oriented industries augmented by 11.8 per cent.
14. "In the meantime, the domestic-oriented industries grew modestly by 4.6 per cent as against 6.4 per cent recorded in May 2024."
15. "The slower growth was attributable to a decline of 10.7 per cent in the manufacture of motor vehicles, trailers & semi- trailers as well as moderation in the manufacture of food processing products to 3.9 per cent," it said.
16. Looking at the performance of several countries, DOSM said the IPI was positive in China, South Korea, Taiwan, Vietnam, and the United States.
17. Conversely, it said Singapore, Thailand and Japan experienced a decline in IPI in June 2024.
18. "For the second quarter of 2024, the IPI advanced further by 4.5 per cent as against 3.3 per cent recorded in the first quarter of 2024," it added.
19. In the meantime, throughout the first six months this year (January – June 2024), the IPI improved by 3.9 per cent (January - June 2023: 1.2 per cent).All sectors posting an expansion, namely the mining index, manufacturing index, and electricity index, it added.
Source:
https://www.focus-economics.com/countries/malaysia/news/industrial-production/malaysia-industrial-production-09-08-2024-industrial-output-growth-speeds-up-in-june/
https://www.nst.com.my/business/economy/2024/08/1089039/malaysias-industrial-output-5pct-june-higher-output-manufacturing
