Malaysia will continue to retain its growth momentum in the near term based on the smoothed long-term trend index, the department says
by S BIRRUNTHA / pic BLOOMBERG
MALAYSIA’S Producer Price Index (PPI) for local production eased further to record 4.9% in September 2022 compared to 6.8% in August, according to the Department of Statistics Malaysia (DoSM).
In a statement, DoSM said the increase was attributed by manufacturing index with 8.1% (August: 9.4%), followed by indices of water supply (4.3%), as well as electricity and gas supply (1.2%).
“However, the increase was offset by a decline in the index of agriculture, forestry and fishing (-15.5%).
“On the other hand, the mining index remained unchanged as in the same month of the previous year,” it added.
DoSM noted that for a monthly comparison, the PPI’s local production posted a decline for four consecutive months to record negative 1.4% in September 2022 (August: -0.2%).
“All sectors recorded declines except for the water supply index, which rose 1.1%.
“The index of agriculture, forestry and fishing fell by 5.3%, followed by the indices of mining (4.9%), manufacturing (0.7%), and electricity and gas supply (0.2%),” it said.
Meanwhile, DoSM highlighted that PPI local production recorded an increase of 6.5% for the third quarter of 2022 (3Q22), down from 2Q22’s 11.1%.
“The increase was supported by the indices of manufacturing (9.1%), mining (4.9%), water supply (3.1%), and electricity and gas supply (0.9%).
“However, the increases were also offset by a decrease of 12.1% posted by the agriculture, forestry and fishing index,” it added.
In terms of PPI local production by stage of processing, crude materials for further processing index continued to decline by 6.4% in September 2022, said DoSM.
Furthermore, it said the intermediate materials, supplies and components index increased by 10%, while the finished goods index edged up 3.1%.
“For a monthly comparison, the index of crude materials for further processing declined by 5.4%, followed by the intermediate materials, supplies, and components index (0.8%). However, the finished goods index increased 0.2%,” it noted.
On the country’s economic statistics review, DoSM pointed out that Malaysia’s GDP forecast has been revised upward in the range of 6.5% to 7% as outlined in the latest Economic Outlook 2023 published by the Finance Ministry (MoF).
DoSM said Malaysia’s economic stability in the near term is supported by convincing domestic demand and a robust external sector.
Adding further, DoSM said the production of fresh fruit bunches in September 2022 increased by 8.3% to 9.2 million tonnes compared to 8.4 million tonnes from September 2021.
Natural rubber production in August 2022 decreased 15.2% to 36,411 tonnes from 42,942 tonnes in the same month in 2021.
In the meantime, DoSM highlighted that the performance of the Industrial Production Index in August 2022 rose by 13.6% compared to the same month last year.
“Malaysia’s manufacturing sales stood at RM157.4 billion, ascending by 24.4% (July 2022: 23.8%) as against the same month of 2021.
“The wholesale and retail trade jumped 33.7% year-on-year (YoY) to record RM133.7 billion, spearheaded by retail trade (34.5%), motor vehicles (185.3%) and wholesale trade surged (16.0%),” it added.
In terms of prices, DoSM noted that the Consumer Price Index in September 2022 recorded an increase of 4.5% compared to the same month of the previous year.
It said Malaysia’s trade continued its robust performance with exports increasing by 30.1% to RM144.3 billion in September 2022, while imports increased 33% YoY to RM112.6 billion.
In view of the labour scenario in August 2022, DoSM said the number of employed persons went up by 0.2%, to record 16.02 million persons and the unemployment rate was recorded at 3.7%.
“The Leading Index reached 111.3 points in August 2022, registering an increase of 4% YoY (August 2021: 107 points).
“Hence, it is seen that Malaysia will continue to retain its growth momentum in the near term based on the smoothed long-term trend index,” it said.