Industrial production in Malaysia rose by 3.9 percent year-on-year in June 2019, easing from a 4 percent gain in May and below market expectations of a 4.1 percent increase. This was the smallest yearly rise in industrial output since March, as manufacturing output grew softer (3.8 percent vs 4.2 percent in May), namely transport equipment & other manufactures (5.6 percent vs 6.9 percent), electrical and electronic products (3.5 percent vs 3.7 percent), and petroleum, chemical, rubber & plastics (3.0 percent vs 3.2 percent). Also, electricity output expanded less (1.7 percent vs 5.7 percent). Meanwhile, mining production rose at a faster 4.6 percent (vs 3 percent), mainly led by natural gas index (13 percent vs 7.6 percent). On a monthly basis industrial output fell by 1.1 percent in June, the second straight month monthly drop, after a 0.3 percent fall in May. Industrial Production in Malaysia averaged 2.45 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.