Industrial production in Malaysia rose by 4 percent year-on-year in May 2019, the same pace as in April but beating market expectations of a 3.4 percent gain. It remained the biggest yearly rise in industrial output in six months, as manufacturing output grew further (4.2 percent vs 4.3 percent in April), namely transport equipment & other manufactures (6.9 percent), electrical and electronic products (3.7 percent), and petroleum, chemical, rubber & plastics (3.2 percentt). Also, electricity output continued to rise (5.7 percent vs 5.8 percent). At the same time, mining production rose at a faster 3 percent (vs 2.3 percent), mainly led by natural gas index (7.6 percent). On a monthly basis industrial output fell by 0.3 percent in May, the first monthly drop in three months, swinging from a 2 percent rise in April. Industrial Production in Malaysia averaged 2.44 percent from 2007 until 2019, reaching an all time high of 12.80 percent in March of 2010 and a record low of -17.60 percent in January of 2009.
Industrial Production in Malaysia is expected to be 2.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in Malaysia to stand at 3.20 in 12 months time. In the long-term, the Malaysia Industrial Production is projected to trend around 4.80 percent in 2020, according to our econometric models.