KUALA LUMPUR (April 8): Malaysia’s factory output decelerated in February as a slowdown in manufacturing offset a faster gain in electricity generation and mining activity, official data on Monday showed.
The industrial production index — which measures output from factories, power plants, and mines — rose 3.1% in February from a year earlier, the Department of Statistics said in a statement. That compares to the 4.3% year-on-year growth in January. On a month-on-month basis, the index contracted 6.3% in February.
The latest reading dovetails with the decline in other major economies, including Vietnam, Japan, Thailand, Taiwan, and the US. South Korea’s industrial production growth also moderated in February 2024.
The key manufacturing sector's growth slowed to 1.2% in February versus a 3.7% rise in January. Mining output, meanwhile, accelerated 8.1% in February from 5.0% in the preceding month while electricity production surged 10.9% compared to January’s 8.3% increase.
Domestic-oriented industries expanded 3.8% in February, mainly driven by the manufacture of fabricated metal products and supported manufacturing output. However, export-oriented industries turned negative again in February, led by a decrease in the manufacture of vegetable and animal oils and fats.
Manufacturing sales, meanwhile, rose 0.7% to RM146.2 billion in February, compared to the 3.2% year-on-year growth recorded in January, the Department of Statistics said in a separate statement.
Expansion in transport equipment and the sub-sector of non-metallic mineral products, basic metal and fabricated metal products supported manufacturing sales in February, it noted.