Industrial production in Malaysia increased by 3.4 percent year-on-year in December of 2018, accelerating from an upwardly revised 2.6 percent gain in November and beating market expectations of 2.8 percent. Manufacturing production growth quickened (4.4 percent vs 3.7 percent in November), namely electrical and electronic products (7.2 percent); transport equipment and other manufactures products (7 percent); and petroleum, chemical, rubber and plastic products (3.6 percent). Also, electricity output continued to rise (2.7 percent vs 3.2 percent). In addition, mining production increased 1.0 percent, reversing from a 0.7 percent fall in a month earlier, mainly due to a 2.5 percent rise in crude oil. Considering 2018 full year, industrial output grew 3.1 percent, slower than a 4.3 percent growth in the prior year. On a monthly basis industrial production fell 1.6 percent in December, compared to a 0.1 percent increase in a month earlier. Industrial Production in Malaysia averaged 2.41 percent from 2007 until 2018, 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 4.20 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 3.60 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.