KUALA LUMPUR: The Industrial Production Index (IPI) posted a 5.8% gain in December 2021 compared with the same month in the previous year.

       On a month-on-month basis, the IPI rose by 1.3%.

       “The IPI in 2021 recorded an expansion of 7.4% as compared to 2020. The increment was influenced by the rise in all components: the manufacturing index rose by 9.5%, electricity index by 2.3% and mining index by 1.5%. When compared to the period before the occurrence of Covid-19 in 2019, the IPI grew by 2.7%,” the Statistics Department said in a statement yesterday.

       The expansion of the IPI in the month of December was due to a year-on-year (y-o-y) increment of 8.4% in the manufacturing index and 3.7% in the electricity index, while the mining index fell 2.5%, the department said.

       The department said the manufacturing sector saw a y-o-y growth due to the growth in electrical and electronic (E&E) products of 18.2%; food, beverages and tobacco products of 10.3% and non-metallic mineral products, basic metal and fabricated metal products with a growth of 5.3%.

       It also said the manufacturing sector’s growth was also driven by both the export-oriented industry and the domestic-oriented industry.

       “The increase in export-oriented industries was mainly supported by the manufacture of computers, electronics and optical products and the manufacture of vegetable and animal oils and fats.

       “The performance of the manufacturing sector was also in line with the encouraging growth of exports,” it said.

       It noted that the growth for the domestic-oriented industry was attributed to the manufacture of food products and manufacture of basic metals.

       The department also said the mining sector output saw a y-o-y decline due to the decrease in crude oil and condensate index by 5.5% and the natural gas index by 0.2%.

       However, it also noted that the mining index registered an increase of 4.1% as compared to the previous month.

       Meanwhile, the electricity sector output rose in December 2021 and compared to the previous consecutive month, the electricity index had increased by 1.7%.

       When compared to the time prior to the pandemic in 2019, the department said the manufacturing index rose by 6.6%.

       “Sub-sectors which surpassed the manufacturing index in 2019 were E&E products that grew by 17.2%; petroleum, chemical, rubber and plastic products by 12.2%; while food, beverages and tobacco rose 0.2%,” it said.