Malaysia IPI dips to 4.0% in June

Industrial output remained strong thanks to manufacturing, mining, and electricity sectors.

Malaysia's industrial production index (IPI) slightly dips to 4.0% in June from May's 4.6% amount.

Manufacturing output grew by 6.2% and services activity rose 7.0%. CPO output also increased by 12.3%,w hilst construction work inched up 11.2%.

This growth is expected to ride on the GDP for Q2 and raise it to 5.5%, UOB said in a flash note.

Strong industrial output in June was supported by manufacturing, which increased by 4.7%; mining by 2.4%; and electricity by 2.1%.

Export-oriented sectors also saw growth in June, especially electrical and electronics at 8.3%, textiles and apparel at 8.5%, wood products and furniture at 2.2%,
petroleum, chemicals, rubber, plastics and pharma at 2.8%.

Domestic-oriented sectors that fuelled the momentum include food, beverages and tobacco at 6.7% and non-metallic mineral products, basic metal and fabricated metal at 4.1%.

Separately manufacturing sales went up 11.5% YoY in June, or 15.5% in Q2.

Employment also rose by 2.5% YoY, whilst average salaries and wages per employee in manufacturing rose 7.3% to US$777.1 (MYR3,338) per month.

However, productivity growth was cut in half with sales per worker lower at 8.8% compared to last month's 16.4%.