Kenanga Research said the buoyant trade and investment performance would accelerate the manufacturing sector recovery.
KUALA LUMPUR: Malaysia's industrial production index (IPI) rose 2.4% year-on-on-year in May, on the back of steady output growth in the manufacturing sector, according to the national statistics department.
Chief statistician Datuk Sri Mohd Uzir Mahidin said the increase was primarily driven by the manufacturing sector which grew 4.6% as and a 4.2% expansion in electricity output.
However, the mining sector output plummeted by 6.9%, in contrast with double-digit growth of 10% recorded in April 2024.
Compared to the previous month, the IPI rebounded to 3.5% from negative-7.6%.
“The steady output growth in the manufacturing sector was bolstered by the acceleration in export-oriented industries, which grew 3.7% as against 2.6% in April," said Mohd Uzir in a statement.
This marked the highest growth registered since November 2022 (5.1%), driven primarily by a strong rebound in the manufacture of computer, electronics and optical products.
The growth momentum was also reflected in the country's manufactured goods export performance, which expanded 13.5% in May 2024.
On a month-on-month basis, export-oriented industries turned upward by 9% from negative-11.6% in April 2024.
In the meantime, the growth of domestic-oriented industries output remained sound at 6.4% after registering 9.5% in April 2024.
According to Mohd Uzir, the 6.9% deterioration in the mining sector in May was due to a double-digit decline in natural gas production at negative-10.3% and a 1.9% drop in the crude oil and condensate output.
Consequently, the mining index decreased 8.9% following a 6.3% decline in the preceding month.
For the period of January to May, Mohd Uzir said the IPI improved 3.6% as compared to 1.9% in the same period of 2023.
"During the period, all sectors posted an expansion, namely the mining index (4.1%); manufacturing index (3.1%); and electricity index (7.8%)," he said.
