Malaysia's industrial production rose strongly in June 2024, exceeding expectations and reflecting strong manufacturing activity alongside a recovery in mining output.
According to official data released by the Department of Statistics, the index of industrial production (IPI) increased by 5.0% year-on-year in June, beating the 4.2% increase forecast by analysts and marking a significant improvement from the 2.4% growth in May.
This growth was driven by a 5.2% increase in the manufacturing sector, which outpaced the 4.6% increase recorded in May.
Additionally, the mining sector saw a significant recovery, growing by 4.9% after a sharp contraction of 6.9% in the previous month. Electricity generation also contributed to the positive momentum, albeit at a slower rate, increasing 3.5% compared to May's 4.5%.
Export-oriented industries showed strong growth of 6.4%, in line with the increase in manufactured goods exports during the month.
However, the domestically oriented industry grew at a slower rate of 4.6%, partly due to a decline in the production of motor vehicles and related sectors.
Overall, manufacturing sales continued their upward trend, increasing by 5.9% to RM156.1 billion in June, driven by gains in the electrical-and-electronics and food, beverage and tobacco subsectors.
