IPI REBOUNDS TO 4.3% IN JANUARY 2024, SPURRED BY EXPANSION IN ALL SECTORS - DOSM

The Industrial Production Index (IPI) rebounded to 4.3% year-on-year in January 2024, spurred by expansion in all sectors, according to the Department of Statistics Malaysia (DoSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the IPI rebounded to 4.3% in January 2024 after recording a slight drop of 0.03% in December 2023, marking the highest growth registered since May 2023.

“The increase was spearheaded by a surge of 3.7% in the manufacturing sector compared to the negative 1.4% recorded in the previous month.

“Additionally, the mining sector sustained its upward trend by registering 5.0% (December 2023: 4.1%) while the electricity sector accelerated at a faster pace of 8.3% (December 2023: 4.1%).

In comparison with the preceding month, the IPI improved by 2.0% against the negative 1.3% recorded in the previous month, he said in a statement.

Mohd Uzir said the turnaround of 3.7% in the manufacturing sector in January 2024 was driven by the vibrant performance of domestic-oriented industries which picked up to 8.0% (December 2023: 4.2%).

While export-oriented industries returned to positive growth of 1.6% after seven consecutive months in negative territory (December 2023: -4.1%). 

The expansion in domestic-oriented industries was primarily reinforced by a double-digit growth in the manufacture of motor vehicles, trailers and semi-trailers which registered an increase of 12.1%, followed by the manufacture of fabricated metal products except machinery and equipment at 11.9%.

In addition, the manufacture of food processing products also contributed with a growth rate of 8.5%, he said.