Malaysia’s industrial activity decelerates, grows slower than expected in October 2024 — DOSM

Malaysia’s industrial activity decelerated and expanded at a slower-than-expected pace in October this year, as factory production and electricity generation grew, while mining output contracted, official data on Tuesday showed.

The industrial production index — which measures output from factories, power plants, and mines — rose 2.1% in October from a year earlier, the Department of Statistics Malaysia (DOSM) said in a statement. That compares to the median 2.6% rise predicted in a Bloomberg poll and September’s 2.3% year-on-year gain.

On a month-on-month basis, the index climbed 1.7%, rebounding from a 0.7% decline in September.

The latest reading nevertheless was in line with modest growth in China, Singapore, Vietnam and Taiwan.

Industrial production in South Korea and Japan returned to positive territories in October but declined marginally in the US and Thailand in the same month.

On a year-on-year basis, the key manufacturing sector expanded 3.3% in October, a tad faster than the 3.2% growth in September. The electricity index meanwhile was up 2.5%, slowing from September’s 3.9% pace.

However, the mining sector declined for the fourth consecutive month, down 2.8% in October versus 2.2% in September.

Growth of domestic-oriented industries picked up to 3.3% versus September’s 2.7%, led by manufacturing of fabricated metal products. Export-oriented industries grew 3.3% in October compared with September’s 3.4%, anchored by vegetable and animal oils and fats as well as rubber products.

Manufacturing sales totalled RM161.3 billion in October, up 3% when compared to the same month last year, the department said in a separate statement. On a month-on-month basis, sales slipped 0.6%.

The rise was primarily driven by an 11.2% increase in the food, beverages and tobacco sub-sector, supported by the electrical and electronics products sub-sector, which climbed 3.2%.

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