Slight slowdown in April industrial output seen

KUALA LUMPUR: Industrial output is likely to be slower in April compared with March, although it will continue to remain healthy, say economists.

An NST Business poll expects the index, which measures changes in manufacturing, mining and electricity activities, to grow by an annualised 2.91 per cent.

The Statistics Department will release the data today.

DBS Bank said the recent surge in exports in Malaysia also suggested a good showing in indus- trial output.

Malaysia’s electronics exports rose 21.2 per cent year-on-year, underpinned by an improvement in global demand.

“The global electronics cycle is definitely on an upswing.

“Semiconductor shipments are running at over 10 per cent yearon-year, while semiconductor equipment billings are surging ahead at around a 40 per cent pace in recent months,” said the bank.

All these factors point to a promising showing in the overall manufacturing sector for Malaysia.

Standard Chartered Bank economist Edward Lee said the manufacturing sector started the year strong but had seen a slowdown due to the recent pullback in electronic manufacturing growth in the region.

Car production was also weak in April, falling by 16 per cent.

“We expect mining to have been softer, as crude oil production fell six per cent year-on-year in the month.”

Externally-oriented industries continue to support industrial activity, led by electronics, while domestic market-oriented industries started the year on a softer note.

“Malaysia’s industrial production should remain healthy going forward, although robust electronics sector growth may ease,” said Lee.