KUALA LUMPUR, Sept 11 -- MIDF Amanah Investment Bank Bhd has maintained its forecast for industrial production index (IPI) growth at 2.9 per cent for 2019, driven by the expansion during the first half of this year (H1 2019).
In a research note today, it said in H1 2019, IPI growth averaged at 3.3 per cent year-on-year (y-o-y).
“The manufacturing sector, which accounts for about 70 per cent of the IPI weight, is expected to perform modestly in H2 2019 amid escalating trade tensions, and that could drag the overall IPI performance this year.
“Malaysia’s IPI growth in July 2019 was at 1.2 per cent y-o-y, the lowest expansion rate under the 2015-base year figures, mainly due to the 8.4 per cent y-o-y decline in mining output,” it said.
Meanwhile, MIDF Amanah said manufacturing and electricity output grew by 4.0 per cent y-o-y and 2.0 per cent y-o-y, respectively.
“Moving forward, we foresee that IPI will continue expanding at a steady pace in H2 2019,” it said.