KUALA LUMPUR, May 10 — MIDF Research has maintained that Malaysia’s industrial production index (IPI) for 2024 will grow 3.7 per cent compared to 1.1 per cent a year ago.
The optimism is supported by the expectation of positive business outlook as the domestic spending is anticipated to continue growing and external demand to recover this year.
“Despite the optimism that growth will pick up this year, we remain cautious over several downside risks such as weak growth in major economies such as China and the United States.
“This was due to continuous pressure from higher-than-expected inflation and potential disruptions to the global supply chain in view of the ongoing geopolitical tensions,” it said.
It said in a research note that the external developments could adversely affect the outlook for global trade and production activities.
For March 2024, Malaysia’s IPI extended its expansionary growth into the third consecutive month, advancing 2.4 per cent year-on-year (February 2024: 3.1 per cent). — Bernama