Driven by the manufacturing sector, Malaysia’s industrial production index (IPI) beat analyst expectations and increased by 1.2 percent in January 2021 compared to the same month of 2020, data from the Department of Statistics showed on 12 March.
The industrial production expansion exceeded expectations of 10 economists in a Reuters poll, who had anticipated the Malaysian industrial production index to rise by just 0.7 percent in the first month of 2021.
The manufacturing index was the key driver of industrial production in January, Malaysia’s Department of Statistics said. The manufacturing index jumped by 3.5 percent year over year in January.
The major sub-sectors that contributed to the growth in the manufacturing sector in January 2021 were Electrical and Electronics Products whose production rose by 7.9 percent, the Petroleum, Chemical, Rubber and Plastic Products sub-sector rising by 4.5 percent, and the Wood Products, Furniture, Paper Products and Printing sub-sector which saw growth of 2.4 percent.
The overall industrial production index rose by 0.1 percent in January 2021 compared to December 2020, the statistics data showed.
In February, Malaysia’s Department of Statistics said that the country’s exports jumped by 6.6 percent year over year in January 2021, driven by the 11.7-percent increase in manufacturing exports, especially electrical and electronics products.
Malaysia’s industrial production index is expected to continue to rise this year, on the back of strong manufacturing performance due to external demand for electronics, Moody’s Analytics said on 12 March.
“Malaysia has benefited from the global shortage of semiconductors in the automobile sector, together with other manufacturing powerhouses in the region,” Moody’s Analytics said in a report, carried by Malay Mail.