Malaysia’s IPI up 18.2pc month-on-month in May 2020, says Stats Dept

Malaysia’s IPI up 18.2pc month-on-month in May 2020, says Stats Dept

09 Jul 2020

Malaysia’s Industrial Production Index (IPI) surged 18.2 per cent month-on-month (m-o-m) in May 2020 as the government has allowed more industries to resume operations, said the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the increment to the increase in all indices, namely manufacturing (25.9 per cent), electricity (13.7 per cent) and mining (0.4 per cent).

However, on a year-on-year (y-o-y) basis, IPI fell 22.1 per cent during the month compared with May 2019 due to the significant decline in all indices, namely, manufacturing (-23.2 per cent), mining (-22.2 per cent) and electricity (-10.3 per cent).

In terms of output, the manufacturing sector contracted 23.2 per cent y-o-y, following the y-o-y decrease in the output of its sub-sectors, namely non-metallic mineral products, basic metal and fabricated metal products (-45.1 per cent), transport equipment and other manufactures (-38.5 per cent) and petroleum, chemical, rubber and plastic products (-24.3 per cent).

The mining sector’s output also fell 22.2 per cent y-o-y due to the y-o-y decrease in crude oil and condensate index (-22.2 per cent) and natural gas index (-22.2 per cent), while the electricity sector’s output also decreased 10.3 per cent y-o-y.

Meanwhile, in a virtual press conference today, Mohd Uzir said the Wholesale and Retail Trade sector recorded positive growth for May 2020, increasing 26.3 per cent month-on-month to RM84.4 billion.

Moving forward, he said the reopening of almost all economic sectors and business activities under the conditional movement control order would likely have a positive impact on the sector in June 2020.

He said the government’s move to allow business premises to resume operations and the opening of the interstate borders will galvanise the entire economic chain, thus catalysing the economic growth.

“Additionally, government initiatives such as the Prihatin Rakyat Economic Stimulus Package will also help to drive the household spending and subsequently boost retail sales,” he added.

Source: Bernama