Malaysia’s industrial output expands in August, but misses expectations

Malaysia’s industrial output expanded in August from a year earlier. According to Malaysia’s Department of Statistics, the nation’s industrial production grew 4.9 percent year-on-year, driven by positive expansion in the sectors of mining, electricity and manufacturing. However, the industrial production print came in below the consensus expectation of 5.4 percent. It the output grew rapidly than July’s growth of 4.1 percent.

The manufacturing sector output grew further by 4.6 percent in the month following a rise of 3.3 percent seen in July 2016. Major sub-sectors that witnessed growth in August included electrical and electronics products, which rose 7.9 percent; petroleum, chemical, plastic and rubber products, which grew 4.5 percent; and non-metallic mineral products, fabricated metal products and basic metal that rose 4.6 percent.

Meanwhile, the mining sector saw a growth of 4.3 percent in August, decelerating from 6.1 percent growth seen in July 2016. The rise in crude oil index of 6.5 percent and in natural gas index of 1.5 percent underpinned the expansion in mining sector output. The statistics department also showed that the electricity sector output grew considerably by 11.4 percent in August, accelerating from the 7.1 percent growth seen in July 2016.

Exports of Malaysia in August had increased surprisingly, stimulated by increased shipments of manufactured goods and increasing palm oil prices.