Malaysia Industrial Production - 8 February 2024

Falls in December on weak manufacturing output; overall 2023 slowed sharply

Industrial Production Index (IPI) contracted in December (-0.1% YoY; Nov: 0.6%), below expectations (KIBB: 1.5%; consensus: 0.6%). Overall, growth for 2023 settled at 0.9% (2022: 6.7%), a tad lower than house forecast of 1.0%

  • The subdued performance was attributed to muted manufacturing, particularly in the export-oriented subsector. However, the slowdown was partially offset by an expansion in mining and electricity sectors.
  • MoM (-1.3%; Nov: -0.9%): contracted to five-month low and remained in a contraction for the second consecutive month.
  • 4Q23 (1.0%; 3Q23: 0.0%): charted a positive expansion, marking a three-quarter high.