KUALA LUMPUR (Feb 7): Malaysia’s industrial production index (IPI) dipped by 0.1% year-on-year (y-o-y) in December 2023 — after recording positive growth for two consecutive months — weighed down by the manufacturing sector, according to the Department of Statistics Malaysia (DOSM).
The IPI expanded by 2.4% y-o-y in October 2023 and 0.6% y-o-y in November 2023.
According to DOSM’s statement, the manufacturing sector contracted by 1.4% in December (versus a 0.1% dip in November) as export-oriented industries dropped by 4.1% (from a 2.7% slip the prior month).
“The contraction was mainly attributable to the fall in the manufacture of computer, electronics and optical products (-7.2%), manufacture of coke and refined petroleum products (-4.6%), and the manufacture of electrical equipment (-7.6%).
“This decline mirrored the country's export performance, which continuously fell to a larger negative of 10.0% in December 2023. On a month-on-month comparison, the export-oriented industries weakened by 3.3%,” said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
The mining sector recorded 3.6% growth, propelled by a 5% expansion in natural gas production as well as a 1.6% increase in crude oil and condensate.
The electricity sector, meanwhile, rose 4.6% after registering an increase of 4.3% in the preceding month.
Overall, the IPI increased by 0.9% in 2023 as compared to 6.7% in 2022, said Mohd Uzir.
All sectors posted positive growth during the year, namely the electricity index (2.5%), mining index (0.8%), and manufacturing index (0.7%), he added.