For Q2 2024, the Industrial Production Index advanced by 4.5%, up from 3.3% in Q1 2024, driven by growth in the manufacturing sector. (Petronas pic)
PETALING JAYA: Malaysia’s Industrial Production Index (IPI) rose by 5% year-on-year in June 2024, sustaining a positive momentum for six consecutive months, driven by consistent growth in the manufacturing sector, said the statistics department.
Chief statistician Uzir Mahidin said the manufacturing sector grew by 5.2% (May 2024: 4.6%), with a 4.9% turnaround in the mining sector production (May 2024: -6.9%) and 3.5% growth in the electricity sector (May 2024: 4.5%).
Compared to the previous month, he noted the IPI went up by 4.8% compared to 3.5% recorded in May 2024, he said in a statement.
“The steady output growth in the manufacturing sector was bolstered by expansion in export-oriented industries at 5.4% (May 2024: 3.7%), marking the highest increase since September 2022.
“The strong production expansion was observed in the manufacture of coke and refined petroleum products, which rebounded to 12.5% (May 2024: -5.5%), and the manufacture of vegetable and animal oils & fats, which accelerated by 11% (May 2024: 4.8%),” he said.
Uzir noted that the manufacturer of computers, electronics, and optical products also supported growth at 4.9% in June 2024 (May 2024: 8.4%).
On a month-on-month basis, he said the export-oriented industries increased by 11.8% (May 2024: 9%), while the growth of domestic-oriented industries output grew modestly by 4.6% as against 6.4% recorded in May 2024.
Domestic-oriented industries slipped by 5.4% in June 2024, compared to the positive growth of 2.3% in the previous month.
“Looking at the performance of several countries, the IPI was positive in China, South Korea, Taiwan, Vietnam, and the US.
“Conversely, Singapore, Thailand, and Japan experienced a decline in IPI in June 2024,” Uzir shared.
He pointed out that for the second quarter of 2024 (Q2 2024), the IPI advanced further by 4.5% as against 3.3% recorded in the first quarter of 2024 (Q1 2024), driven by the manufacturing sector growth of 4.9% (Q1 2024: 2.1%).
“Meanwhile, the IPI for mining and electricity sectors grew modestly by 2.4% (Q1 2024: 5.9%) and 5.3% (Q1 2024: 9.1%) respectively.
“The IPI dropped by 1.2% in Q2 2024 against Q1 2024, influenced by a decline in the mining sector,” he added.
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