Malaysia’s industrial production may have risen 2.3% in September
As the country’s strong commodities have offset the poorer performance of its electronics sector.
According to Standard Chartered, sectors linked to commodities, such as petroleum and rubber should continue to do well, having contributed about 90% of manufacturing-sector growth in August.
Here’s more from Standard Chartered:
| We expect industrial production to have risen 2.3% y/y, following the higher than expected 3% y/y print in August. The IP performance profile should mirror that of the export sector, where commodities have offset the poorer performance of the electronics sector. Within manufacturing, sectors linked to commodities, such as petroleum and rubber, should continue to do well. Indeed, these sectors contributed to about 90% of manufacturing-sector growth in August. Meanwhile, oil production appears to have improved after a poor H1, expanding m/m since June. Further expansion on this front should support another positive m/m print in the mining sector. On balance, IP appears to be softening owing to external market weakness, but support from commodity-linked sectors is limiting the downside for now.
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