Malaysia’s Industrial Production up 50.1% on strong manufacturing performances

by LYDIA NATHAN / pic by MUHD AMIN NAHARUL

MALAYSIA’S Industrial Production Index (IPI) increased 50.1% in April 2021 compared to the same month a year ago driven by strong performances in the manufacturing sector that rose by 68%.

Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin said the IPI increased due to all indices which included not only manufacturing but also electricity and mining at 22.9% and 14.3% respectively.

“The sharp increment of growth in April 2021 was also a reflection of recovery due to base effect from the implementation of MCO 1.0 last year,” he said.

According to the Department of Statistics, the major sub-sectors contributing to the growth in the manufacturing sector in April 2021 were transport equipment and other manufactures at 275.2%, non-metallic mineral products, basic metal, and fabricated metal products at 141.0% and electrical & electronics products at 70.1%.

“The export-oriented industries drove the growth of the manufacturing sector by 52.8% while domestic-oriented industries increased by 110.9%.”

“The sector is also driven by the high capacity utilisation rate especially in electrical & electronic products and petroleum, chemical, rubber and plastic products sub-sectors.

In addition, the performance of the manufacturing sector is also in line with the notable growth in exports and IPI for some of the main trading partners of Malaysia,” Mohd Uzir said.

Meanwhile, he added the mining sector grew positively in April 2021 for the first time since February 2020 with 14.3% as compared to the same period of the previous year.

“The expansion was due to the increase in natural gas index at 23.9%, and crude oil and condensate index at 2.7%. Additionally, the electricity sector output expanded 22.9% in April 2021 as compared to the same month of the previous year,” he noted.