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Industrial Production Index up 1.7% on-year in December, driven by manufacturing

Malaysia’s Industrial Production Index (IPI) grew 1.7% in December 2020, compared to the same month of the previous year, driven by a 4.1% growth reported by the manufacturing index.

However, the mining and the electricity indices fell 5.4% and 0.2%.

On a year-on-year basis, Malaysia’s chief statistician Datuk Seri Mohd Uzir Mahidin found manufacturing output rose 4.1% in December compared to a 2% increase reported in November 2020.

“The major sub-sectors contributing to the growth in the manufacturing sector in December 2020 were transport equipment & other manufactures (8.4%), petroleum, chemical, rubber & plastic products (7.7%) and electrical & electronics products (7.6%),” he said in a statement.

Meanwhile, the mining sector’s output deteriorated 5.4% yoy which was attributed to a 9% decline in the crude oil & condensate index and a 2.5% drop in the natural gas index.

The electricity sector output edged down 0.2% in December 2020 compared to the same month of the previous year.

On the whole, the IPI for the final quarter of 2020 fell 0.3% compared to the previous year largely due to a 10.5% contraction in mining and a 0.6% decline in electricity.

The quarter saw the manufacturing sector record an increase of 2.8%.

For the full year, the IPI shrank 4.2% compared to 2019, attributed to a drop in all indices; mining index (-9.7%), electricity index (-3.7%) and manufacturing index (-2.7%).

The electricity sector output edged down 0.2% in December 2020 compared to the same month of the previous year.

  • Bernama