PETALING JAYA: MIDF Research expects industrial output to grow at 4.3% this year on the back of sustained expansion in external demand and growing domestic spending.

       “We assume the diminishing low base effect will bring the pace of Industrial Production Index growth to a more normal level.

       “Looking at the increase in the manufacturing Purchasing Managers’ Index to 50.9 in February 2022, we expect manufacturing activities will continue to grow although businesses are facing challenges from rising production costs, given higher input prices and other supply constraints,” it said in a report.

       The research house added, “In addition, we opine that the government’s decision to reopen international borders will allow production activities to pick up in certain sectors, such as construction and plantation.”