KUALA LUMPUR (July 9): Malaysia’s industrial output picked up in May thanks to a sharp rise in natural gas extraction while factories churned out more electrical and electronics products.

The industrial production index — which measures output from factories, power plants and mines — rose 8.4% in May from a year earlier, the Department of Statistics Malaysia said in a statement. The rate was below Bloomberg's consensus estimate of 9.4% but was tad above April’s 8.2% year-on-year gain.

On a month-on-month basis, the index rebounded 1.3% in May, after contracting 3.4% in April.

Manufacturing output rose 6.6% in May, slower than the 8.3% expansion recorded in April. Export-oriented industries accelerated, driven mainly by a 17% increase in computer, electronics and optical products.

Domestic-oriented industries, however, expanded at a much slower pace in May with growth supported by manufacturing of fabricated metal products as well as basic metals.

The mining sector jumped nearly 20% in May compared with 6.8% in April. Natural gas output surged 37% and offset a slight decline in production of crude oil and condensate.

Electricity generation grew 4.2% year-on-year in May, slower than the 10.5% increase recorded in April.

The data dovetails with a steep rise in industrial activities in Singapore and Taiwan. Industrial output in China, the US and Vietnam also expanded while Thailand, Japan and South Korea recorded declines in May. 

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Malaysia's May manufacturing sales up 8.9% on growth in electrical and electronics products