PETALING JAYA: Malaysia’s Industrial Production Index (IPI) expanded by 5.3% in July 2024, driven by strong growth in the manufacturing sector output.
Chief Statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin, “The Industrial Production Index expanded 5.3% in July 2024 after registering 5.0% growth in the preceding month. The expansion was attributable to the strong increase in the manufacturing output 7.7% (June 2024: 5.2%) and a 7.0% growth (June 2024: 3.5%) in electricity output. Meanwhile, the production of the mining sector declined 5.0% as against positive growth of 4.9% in June 2024. In comparison with the preceding month, the IPI dropped 1.5% from 4.8% growth in the previous month.”
Both export-oriented and domestic-oriented industries perform favourably in July 2024 by
recording 7.8% (June 2024: 5.4%) and 7.5% (June 2024: 4.6%) growths, respectively. The growth in export-oriented industries was underpinned by broad-based expansion across all industries particularly by a double-digit growth of 21.9% (June 2024: 11.0%) in the manufacture of vegetable & animal oils & fats; and followed by manufacture of computer, electronics & optical products at 5.0% (June 2024: 4.9%).
In addition, the manufacture of coke & refined petroleum products also remained high, with a growth of 11.7% (June 2024: 12.5%). The year-on-year expansion of export-oriented industries mirrored the performance of the country’s export of manufactured goods, which increased by 10.6% in July 2024.
On a month-on-month comparison, the export-oriented industries fell 3.3% from 11.8% growth in June 2024.
The upturn in domestic-oriented industries was primarily driven by a robust growth in the manufacture of other non-metallic mineral products; and the manufacture of basic metals,
which registered increases of 12.2% and 10.5%, respectively. Additionally, the manufacture of motor vehicles, trailers & semi-trailers rebounded with a growth of 3.9% (June 2024: -10.7%). In comparison to the preceding month, the domestic-oriented industries increased 1.0% (June 2024: -5.4%).
Mohd Uzir said, “For the first seven months this year (January-July 2024), the IPI improved 4.1% (January-July 2023: 1.1%), with all sectors posting increases, namely the mining index (2.9%); manufacturing index (4.1%); and electricity index (7.1%).”