Malaysia’s Industrial Production rebounds in July, led by mining and electricity sectors

MALAYSIA’S Industrial Production Index (IPI) showed signs of recovery in July 2023, growing by 0.7% year-on-year (y-o-y) after a contraction of 2.2 percent in June.

According to the Department of Statistics Malaysia (DoSM) the improvement was driven by the mining and electricity sectors, which saw growth of 4.2% and 1.5%, respectively.

However, the manufacturing sector continued to decline but at a slower rate of 0.2%.

On a month-on-month basis, the IPI declined by 1.8% in July, contrasting with the 2.2% growth seen in June.

Domestic-oriented industries within manufacturing, such as motor vehicles and food processing, supported manufacturing output.

Export-oriented industries remained on a downward trend, influenced by a drop in exports.

In the mining sector, crude oil and condensate production saw substantial growth, while natural gas declined less. The electricity sector also saw a positive growth of 1.5%.

For the first seven months of 2023 (7M2023), the overall IPI expanded at a slower rate of 1.2% y-o-y, with positive growth across all sectors, although at a reduced pace compared to the previous year. – TMR / pic TMR FILE