Department of Statistics Malaysia released the latest Industrial Production Index with a notable growth of 3.1 % in March 2023 after recording an increase of 3.5 % in February 2023.

The rise it said was driven by the expansion of the Manufacturing sector with 4.1 % (February 2023: 4.8%) and rebounded by 0.8 % in the Mining sector (February 2023: -0.5%). Nonetheless, the Electricity index turned downward to negative 0.3 % during the month from positive growth of 1.1 % last month. In terms of month-on-month comparison, the IPI turned around to a vigorous performance of 8.3 % in March 2023 after a declining trend for three consecutive months.

The increase of 4.1 % in the Manufacturing sector output in March 2023 was mainly backed by the domestic-oriented industries which rose by 5.0 % (February 2023: 7.0%). The rise in the domestic-oriented industries was propelled by the Manufacture of motor vehicles, trailers & semi-trailers; and Manufacture of fabricated metal products, except machinery & equipment by 9.8 % (February 2023: 9.5%) and 5.5 % (February 2023: 8.5%) respectively. In the meantime, the export-oriented industries grew by 3.6 % (February 2023: 3.7%), induced by the Manufacture of computers, electronics & optical products which rose by 7.1 % (February 2023: 6.4%); and the Manufacture of vegetables and animal oils & fats which soared by 15.2 % (February 2023: 18.3%). In comparison with the preceding month, the Manufacturing sector returned to the positive momentum to record 7.8 % after registering a continuous decline since December 2022.

The output in the Mining sector advanced marginally by 0.8 % in March 2023 driven by Crude Oil & Condensate index which bounced back to 5.0 % from a negative 0.3 % recorded in February 2023. On the other hand, the Natural Gas index declined further to 2.1 % from negative 0.5 % in the preceding month. A month-on-month comparison, the Mining index posted strong growth of 8.5 % as compared to a decrease of 9.6 % recorded in February 2023.

Electricity output however decreased marginally by 0.3 % in March 2023 after recording an increase of 1.1 % last month. As compared to the previous month, the Electricity index accelerated by double-digit growth of 14.2 % as against a negative 0.9 % recorded in February 2023.

The IPI moderated to 2.8 % year-on-year as compared to 4.0 % registered in the fourth quarter of 2022. During the period, the Manufacturing and Mining indices increased by 3.4 % and 2.1 % respectively; while the Electricity index continued to decline by 1.2 %.