Malaysia's IPI Expands 5.3% In July, Driven By Strong Manufacturing Output - DOSM

Malaysia's Industrial Production Index (IPI) expanded by 5.3% in July 2024, following 5.0% growth in the previous month driven by a surge in manufacturing output, said the Department of Statistics (DOSM).

In a statement, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said manufacturing output rose by 7.7% in July 2024 compared to 5.2% in the preceding month, and electricity output increased by 7.0% compared to 3.5% in June 2024.

“Meanwhile, the mining sector's production declined 5.0% against a 4.9% growth in June 2024.”

“In comparison with the preceding month, the IPI dropped 1.5% from 4.8% growth in the previous month,” he said.

DOSM said that both export-oriented and domestic-oriented industries performed well in July 2024, registering growth rates of 7.8% and 7.5%, respectively, compared to the previous month's 5.4% and 4.6%.

It said July 2024's growth in export-oriented industries was driven by broad-based expansion across all sectors, with the manufacture of vegetable and animal oils and fats seeing a significant double-digit increase of 21.9% compared with 11.0% in June 2024.

DOSM said this was followed by a 5.0% rise in the manufacture of computer, electronics, and optical products versus 4.9% in June 2024.

“Additionally, the manufacture of coke and refined petroleum products continued to perform well, posting a growth of 11.7% (June 2024: 12.5%),” it said.

Year-on-year, DOSM said the expansion of export-oriented industries mirrored the performance of the country's manufactured goods exports, which rose by 10.6% in July 2024.

“However, on a month-on-month basis, the export-oriented industries declined by 3.3%, compared to 11.8% growth in June 2024,” it added.

On another note, Mohd Uzir highlighted that for the first seven months of 2024, the IPI increased by 4.1% compared to 1.1% in the previous corresponding period.

“All sectors posted growth, namely the mining (2.9%), manufacturing (4.1%), and electricity (7.1%) indices,” he added.