Highlight Malaysia Jan industrial production rises 3.7% y-o-y, below forecast

by **Cals** Thu 13 Mar 2014, 17:09

Highlight Malaysia Jan industrial production rises 3.7% y-o-y, below forecast

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 13 March 2014 12:05

KUALA LUMPUR (Mar 13): Malaysia's industrial production index rose 3.7% in January 2014 from a year earlier on increases in all three components of the output gauge. The IPI's year-on-year increase came in below a median market forecast of a 4.1% increase based on a Reuters survey.

In a statement today, the Statistics Department said the mining and manufacturing components rose 1.5% and 4.7% respectively. Electricity output was 0.2% higher.

"On a yearly basis, manufacturing output increased by 4.7% in January 2014. The major sub-sector registering an increase in January 2014 were electrical and electronic products (13.3%); petroleum, chemical, rubber and plastic products (6.7%) and transport equipment and other manufactures (4.7%).

"The increase in mining sector was driven by crude oil index (0.1%) and natural gas index (2.7%)," the department said.

In monthly terms, January IPI however fell 1.4% from December 2013 as all three components of the index declined.

The department said the mining and manufacturing components fell 1.7% and 1.9% respectively. Electricity output was 2.7% lower.

Reuters reported that Malaysia's January factory output as measured by the IPI likely rose 4.1 percent from a year earlier as a slowly improving export outlook buoyed the electrical and electronic sectors.

Output in December was up 4.8 from a year earlier.