MARKET DEVELOPMENT
Malaysia’s Industrial Output Edges up 7Pc Despite Weaker Growth
Malaysia’s Industrial Output Edges up 7Pc Despite Weaker Growth
12/08/2014 (Business Times) - Industrial output edged up by seven per cent in June compared to a year ago despite a weaker exports growth during the month.
The Statistics Department said the increase in the Industrial Production Index (IPI) was contributed mostly by manufacturing (9.1 per cent), electricity (6.5 per cent) and mining (1.4 per cent).
The sub-sectors in the manufacturing sector which saw increased activities were electrical and electronic products, petroleum, chemical, rubber and plastic products.
Bank of America Merrill Lynch Dr Chua Hak Bin noted the robust IP reading despite the weaker exports for June where export growth decelerated sharply to 7.9 per cent in June, coming in far below expectations.
The RM4 billion trade surplus was the smallest trade surplus since July last year.
Weaker export growth was largely because of electronics, palm oil and chemicals but Chua also pointed out that there has been similar export softness in Korea, Taiwan and Singapore for June.
“We expect GDP to expand at a relatively robust 5.2 per cent in the second quarter as manufacturing and exports continued to do well on the back of stronger external demand. “
Bank Negara will release the second quarter details on Friday.
Goods exports growth accelerated to 14.2 per cent in the second quarter from 10.8 per cent in the first quarter, supported by shipments to the United States, Europe and Asean.
Private consumption probably remained resilient.
Weaker tourism and retail sales however probably weighed on services, following the disappearance of MH370 in March and China tourist arrivals contracted a sharp 20 per cent in April from a year ago.
The Statistics Department also announced that the manufacturing sector has recorded a 3.8 per cent growth in sales totaling RM53.3 billion.
Sales were recorded in diodes, transistors and similar semiconductor devices, electrical capacitors and resistors, passenger cars, production of aluminium and diverse plastic products.
The Statistics Department said the increase in the Industrial Production Index (IPI) was contributed mostly by manufacturing (9.1 per cent), electricity (6.5 per cent) and mining (1.4 per cent).
The sub-sectors in the manufacturing sector which saw increased activities were electrical and electronic products, petroleum, chemical, rubber and plastic products.
Bank of America Merrill Lynch Dr Chua Hak Bin noted the robust IP reading despite the weaker exports for June where export growth decelerated sharply to 7.9 per cent in June, coming in far below expectations.
The RM4 billion trade surplus was the smallest trade surplus since July last year.
Weaker export growth was largely because of electronics, palm oil and chemicals but Chua also pointed out that there has been similar export softness in Korea, Taiwan and Singapore for June.
“We expect GDP to expand at a relatively robust 5.2 per cent in the second quarter as manufacturing and exports continued to do well on the back of stronger external demand. “
Bank Negara will release the second quarter details on Friday.
Goods exports growth accelerated to 14.2 per cent in the second quarter from 10.8 per cent in the first quarter, supported by shipments to the United States, Europe and Asean.
Private consumption probably remained resilient.
Weaker tourism and retail sales however probably weighed on services, following the disappearance of MH370 in March and China tourist arrivals contracted a sharp 20 per cent in April from a year ago.
The Statistics Department also announced that the manufacturing sector has recorded a 3.8 per cent growth in sales totaling RM53.3 billion.
Sales were recorded in diodes, transistors and similar semiconductor devices, electrical capacitors and resistors, passenger cars, production of aluminium and diverse plastic products.