Malaysia's Industrial Production Index (IPI) showcased impressive growth, rising 3.6% year-on-year in November 2024. This remarkable achievement signifies the eleventh consecutive month of expansion, as confirmed by government data. The manufacturing sector played a pivotal role in this increase, reporting a 4.6% uptick compared to 3.3% in October, while electricity output maintained its upward trajectory with a 3.9% rise.
In contrast, mining output saw a slight decrease of 0.8%, although this marks an improvement from the steeper 2.8% decline observed in October. Export-driven industries experienced a notable surge of 5.6%, with key players such as electronics, petroleum products, and plastics leading this charge. On the domestic front, industries witnessed a steady growth of 2.6%, primarily fueled by advancements in food processing, fabricated metal products, and non-metallic mineral products.
When analyzed on a monthly basis, the IPI demonstrated a 0.5% increase, particularly favorable following a 1.7% rise in October, indicating consistent growth momentum. This encouraging data emerges in the context of Malaysia's central bank holding its Overnight Policy Rate (OPR) steady at 3%, a decision that has been in place since May 2023.
The central bank's strategy appears focused on fostering economic growth despite global uncertainties that loom over various markets. From January 2024 through November 2024, Malaysia's IPI recorded an overall growth of 3.7%, bolstered by positive developments in mining, manufacturing, and electricity sectors.
These figures are particularly significant, especially when juxtaposed against the backdrop of global industrial production trends observed in major countries such as China, Singapore, and Vietnam. While these nations have displayed growth, Malaysia's manufacturing sector has notably exceeded expectations.
In contrast, economic performances in Japan, the US, and Thailand have shown signs of decline, further highlighting Malaysia's unique position in the current global economic landscape..