KUALA LUMPUR, Malaysia’s industrial production index (IPI) is expected to expand moderately this year in tandem with slower economic growth, said JF Apex Securities Bhd.
It said despite the slow down, the manufacturing production will remain the main contributor to the IPI, driven by electrical and electronics (E and E) products albeit at a slower pace.
Overall, we forecast 2019 IPI to grow at +3.0 year-on-year (y-o-y) and will be underpinned by uptick in commodity prices, as well as sustainable global semiconductor sales, it said in a statement today,
However, it said the prevailing trade war between the US and China could derail global trade, thus affecting the local IPI performance.
Last Friday, the IPI for March grew +3.1 per cent y-o-y from +1.7 per cent y-o-y in February.
On a monthly basis, the IPI soared to +11.4% m-o-m against -11.6% m-o-m in the previous month, spurred by encouraging outputs in the manufacturing sector albeit minor contraction in mining sector.
For the first quarter of 2019, the IPI grew +2.7 per cent y-o-y compared with +3.8 per cent y-o-y, buoyed by moderated productions in all sectors such as manufacturing: +4.0 per cent y-o-y compared with +5.2 per cent in 2018
Electricity grew higher at +5.8 per cent y-o-y from +3.8 per cent y-o-y in the first quarter of 2018.
Source: BERNAMA (News Agency)