Malaysia's IPI grew 5.3% in July 2024, driven by robust manufacturing output. Manufacturing, electricity rose, but mining declined. IPI up 4.1% in Jan-Jul 2024.

Malaysia's IPI expanded 5.3% in July 2024, driven by strong manufacturing output. Manufacturing rose 7.7%, electricity 7.0%, but mining declined 5.0%. Both export-oriented and domestic-oriented industries performed well. The expansion was broad-based, with significant increases in key sectors. The IPI increased 4.1% in the first seven months of 2024.

Malaysia's Industrial Production Index (IPI) expanded 5.3% in July 2024, driven by strong manufacturing output. Manufacturing rose 7.7%, while electricity output increased 7.0%. However, mining production declined 5.0%. Both export-oriented and domestic-oriented industries performed well, with export-oriented industries growing 7.8% and domestic-oriented industries rising 7.5%. The expansion was broad-based, with significant increases in vegetable and animal oils, computer/electronics, and coke/refined petroleum products. For the first seven months of 2024, the IPI increased 4.1%, with all sectors posting growth. The government's support for manufacturing and export-oriented industries has been crucial in sustaining this recovery.

Malaysia's Industrial Production Index (IPI) Expands 5.3% in July 2024, Driven by Strong Manufacturing Output

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

Manufacturing output rose by 7.7% in July 2024, compared to 5.2% in the preceding month. Electricity output also increased by 7.0%, up from 3.5% in June 2024. However, the mining sector's production declined by 5.0% against a 4.9% growth in the previous month.

Compared to the preceding month, the IPI dropped 1.5% from 4.8% growth in the previous month.

Both export-oriented and domestic-oriented industries performed well in July 2024. Export-oriented industries registered a growth rate of 7.8%, up from 5.4% in the previous month. Domestic-oriented industries also saw a growth of 7.5%, compared to 4.6% in the preceding month.

The growth in export-oriented industries was driven by a broad-based expansion across all sectors. The manufacture of vegetable and animal oils and fats saw a significant double-digit increase of 21.9%, up from 11.0% in June 2024. The manufacture of computer, electronics, and optical products also rose by 5.0%, compared to 4.9% in the previous month. Additionally, the manufacture of coke and refined petroleum products continued to perform well, posting a growth of 11.7%, down from 12.5% in June 2024.

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.

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, with the mining, manufacturing, and electricity indices increasing by 2.9%, 4.1%, and 7.1%, respectively.

Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin highlighted that the strong performance of the manufacturing sector, particularly in export-oriented industries, has contributed to the overall expansion of the IPI in July 2024. The growth in the electricity sector also indicates a positive trend in the country's economic activities.

The continued improvement in the IPI, driven by the manufacturing and electricity sectors, suggests that Malaysia's industrial production is on a steady recovery path, despite the challenges posed by the global economic environment. The government's efforts to support the manufacturing and export-oriented industries have played a crucial role in sustaining this growth momentum.