Malaysia's IPI Rises 5% In June, Sustaining Six Months Of Positive Growth - DoSM

Malaysia's Industrial Production Index (IPI) rose by five% year-on-year in June 2024, sustaining a positive momentum for six consecutive months, driven by consistent growth in the manufacturing sector, according to the Department of Statistics Malaysia (DoSM).

Chief statistician Datuk Seri Mohd Uzir Mahidin said the manufacturing sector grew by 5.2% (May 2024: 4.6%), with a 4.9% turnaround in the mining sector production (May 2024: -6.9%) and 3.5% growth in the electricity sector (May 2024: 4.5%).

Compared to the previous month, he noted the IPI went up by 4.8% compared to 3.5% recorded in May 2024, he said in a statement.

“The steady output growth in the manufacturing sector was bolstered by expansion in export-oriented industries at 5.4% (May 2024: 3.7%), marking the highest increase since September 2022.

“The strong production expansion was observed in the manufacture of coke and refined petroleum products, which rebounded to 12.5% (May 2024: -5.5%), and the manufacture of vegetable and animal oils & fats, which accelerated by 11.0% (May 2024: 4.8%),” he said.

Mohd Uzir noted that the manufacture of computers, electronics, and optical products also supported the growth at 4.9% in June 2024 (May 2024: 8.4%).

On a month-on-month (m-o-m) basis, he said the export-oriented industries increased by 11.8% (May 2024: 9.0%), while the growth of domestic-oriented industries output grew modestly by 4.6% as against 6.4% recorded in May 2024.

The domestic-oriented industries slipped by 5.4% in June 2024, in contrast with the positive growth of 2.3% in the previous month.

“Looking at the performance of several countries, the IPI was positive in China, South Korea, Vietnam, and the United States.

“Conversely, Singapore, Thailand, and Japan experienced a decline in IPI in June 2024,” Mohd Uzir shared.

He pointed out that for the second quarter of 2024 (2Q 2024), the IPI advanced further by 4.5% as against 3.3% recorded in the first quarter of 2024 (1Q 2024), driven by the manufacturing sector growth of 4.9% (1Q 2024: 2.1%).

“Meanwhile, the IPI for mining and electricity sectors grew modestly by 2.4% (1Q 2024: 5.9%) and 5.3% (1Q 2024: 9.1%) respectively.

“The IPI dropped by 1.2% in 2Q 2024 against 1Q 2024, influenced by a decline in the mining sector,” he added.