KUALA LUMPUR: Malaysia’s economy continued to recover in September as the industrial production index (IPI) increased by 2.5% from a year ago, underpinned by the exported-based manufacturing sector, the Statistics Department said.

       Reuters reported the expansion was above forecast as a survey showed it was expected to rise 1.9%, according to 14 economists surveyed in a Reuters poll.？

       Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said on Tuesday the IPI was supported by the 4% growth in manufacturing index and 0.4% in electricity index. However, the mining index contracted by 3%.

       “On month-on-month basis, the IPI increased by 3.7% driven by manufacturing and electricity sectors,” he said.

       Mohd Uzir added the manufacturing sector output increased by 4% in September 2021 after expanding by 0.6% in August.

       The main subsectors contributed to the growth in manufacturing sector in September 2021 were electrical & electronics products (12.3%), petroleum, chemical, rubber & plastic products (6.1%) and food, beverages & tobacco (2.1%).

       The manufacturing sector’s growth was underpinned by export-oriented industries, which grew 6.7% while domestic-oriented industries shrank by 1.9%. The increase in export-oriented industries was mainly supported by the manufacture of computer, electronics & optical products and manufacture of coke & refined petroleum products.

       Mohd Uzir added the performance of the manufacturing sector was also in line with the encouraging growth of exports.

       However, the decline in the domestic-based industries was impacted by the manufacture of motor vehicles, trailers & semi-trailers andmanufacture of other non-metallic mineral products.

       On the performance of the manufacturing sector, it expanded by 5.5% as compared to August 2021 due to higher capacity utilisation.

       The was especially in the food, beverages & tobacco, electrical & electronic products and petroleum, chemical, rubber & plastic products subsectors.

       However, the mining sector output shrank 3% in September 2021 on-year due to the 7.7% decline in crude oil & condensate index. As for natural gas index augmented by 1%, he said.

       On the mining index, it declined 2.9% as compared to the previous month.

       Mohd Uzir said the electricity sector output rose 0.4% in September 2021 on-year. The electricity index grew 1.6%.

       Third quarter -- The IPI for the 3Q 2021 deteriorated 1.1% from a year ago due to the decline in all electricity, mining and manufacturing indices, 3.1%, 2.2% and 0.7% respectively.

       January-September: For the nine months, the IPI expanded 7.6% from the previous corresponding period due to the increase in all components; manufacturing index (9.6%), mining index (2.3%) and electricity index (1.6%).

       Infographic of the industrial production index in September 2021