Malaysia's Oct industrial production up 1.7%

Published: Thursday December 12, 2013 MYT 12:00:00 AM 
Updated: Thursday December 12, 2013 MYT 7:45:40 AM
Malaysia's Oct industrial production up 1.7%
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Going strong:The October IPI is boosted by manufacturing, which rises 3.3%.



KUALA LUMPUR: Malaysia’s industrial production index (IPI) in October grew a stronger-than-expected 1.7% year-on-year following a rebound in manufacturing, and surprised economists who forecast of a 0.8% increase.

The Statistics Department said yesterday the October IPI was boosted by manufacturing, which rose 3.3% and electricity, up 4.8%. Mining fell 3.6%.

It said September’s IPI was unchanged at 1.0% on-year.

“In seasonally adjusted terms, the IPI in October 2013 increased by 1.9% month-on-month. The increase was particularly due to the increases of manufacturing index and mining index of 0.8% and 4.4% respectively. Meanwhile, the electricity index decreased by 0.9%,” it said.

The department said on a yearly basis, manufacturing output rose 3.3% in October following an increase of 2.4% in September.

Major sub-sectors which saw increases in October 2013 were electrical and electronics products (14.3%); transport equipment and other manufactures (15.1%) and textiles, wearing apparel, leather products and footwear (9.4%).

On a seasonally adjusted month-on-month basis, manufacturing output increased by 0.8% in October.

Alliance Research said it expected the long-term trend to remain intact, reflected by strong export demand from major advanced economies.

“Consequently, we maintain our earlier projection of gross domestic product (GDP) growth at 5.0% in the fourth quarter of 2013. For the full year, we forecast growths of 4.6% and 5% in 2013 and 2014 respectively,” it said.

Alliance Research said the rising trend was in line with the strong trade performance in October, as well as the steady recovery in the advanced economies.

“The recovery in the domestic economy was supported by a welcoming expansion in the trade performance. Latest data showed growth of exports rebounded to 9.6%, while imports gained strongly 13.9% on-year in October.

“Meanwhile, stronger import demand suggest a continued recovery in the manufacturing sector as well as future manufactured exports, which represent a backbone of Malaysia’s gross exports,” it said.