Industrial production in Malaysia rose by 1.2 percent year-on-year in July 2019, slowing sharply from a 3.9 percent gain in June and missing market expectations of a 3.5 percent increase. This was the smallest yearly rise in industrial output since a 0.6 percent fall in December 2015, amid a slump in mining production (-8.4 percent vs 4.6 percent in June), mainly dragged down by crude oil and condensate (-22.7 percent vs 3.7 percent). Meantime, manufacturing output growth accelerated (4 percent vs 3.8 percent), namely transport equipment & other manufactures (5.8 percent vs 5.6 percent), electrical and electronic products (4.9 percent vs 3.5 percent), and petroleum, chemical, rubber & plastics (3.4 percent vs 3 percent). Also, electricity output expanded faster (2 percent vs 1.7 percent). On a monthly basis industrial output fell by 0.4 percent in July, the third straight month of monthly drop, after a 1.1 percent decline in June. 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.