News & Events

[ 18-02-2013 ]
Malaysia Dec industrial output expected to stay healthy

KUALA LUMPUR: Industrial output in December is expected to remain healthy and stable, said economists.

A Business Times poll expects the Industrial Production Index (IPI) to grow by an average 5.85 per cent compared to a year ago.

The Statistics Department will release the details tomorrow. 

The IPI grew by 7.5 per cent in November.

"We expect a stable industrial production growth in December on auto and crude palm oil production," said CITI.

"Manufacturing industrial output could edge up. The Malaysian Automotive Association, for example, saw the number of passenger cars produced surge to 46.2 per cent year-on-year from November's 37.1 per cent, while the CPO (crude palm oil) production surged 19.1 per cent year-on-year from November's 16.2 per cent."

Bank of America Merrill Lynch also expects industrial production to expand by 4.8 in December from a year ago, driven by manufacturing (6.7 per cent). However, mining probably stagnated, given the high base last year. 

Gundy Cahyadi of OCBC Bank remarked that the IPI growth number should suggest that the short-term drag seen in exports has been offset by a strong domestic demand.