Malaysia's industrial production predicted to grow 2.9%

Here's what boosted this growth.

According to DBS, Malaysia's industrial production (Nov13) due today is likely to post an expansion of 2.9% YoY, up from 1.7% in the previous month.

Here's more:

A bit of base effect will help to provide some technical lift but generally speaking, demand is picking up, particularly from the external environment.

PMIs of key markets have been inching northward, reflecting the improvement in the global economic conditions. Key electronics leading indicator such as the SEMI book-to-bill ratio has been indicating expansion in the industry while global semiconductor sales have been rising.

That said, some seasonal factors such as the lapsing of the Christmas season effect and upcoming Chinese New Year lull, could post some downsides risk to the number.

As it is, export growth announced just yesterday has disappointed. Headline export growth came in below expectation at 6.7% YoY, lower than the consensus forecast of 10.3%. So on this basis, similar downside surprise may surface in the industrial production number today too.