MBSB IB Anticipates Malaysia's IPI Growth To Moderate To 2.0 Pct In 2025

KUALA LUMPUR, Sept 11 (Bernama) -- MBSB Investment Bank Bhd has maintained its projection for Malaysia's Industrial Production Index (IPI) growth to moderate to around 2.0 per cent this year, compared to 3.7 per cent last year.

It said in a note today that the projection was due to the possible impact of higher tariffs on external trade and the production of export products.

“Earlier front-loading activities, pick-up in re-exports and sustained rise in domestic demand will keep IPI growth in the positives.

“On the domestic front, we expect increased domestic spending and local business activities to continue to drive production of domestic-oriented goods,” it said.

The investment bank also expects local producers and exporters to closely monitor the risk of slower external demand.

This is particularly from major markets such as the United States and China, which will affect their production activities and hiring decisions.

Earlier, the Department of Statistics Malaysia (DoSM) reported that Malaysia's IPI growth slowed down to 4.2 per cent year-on-year in July 2025 from 5.8 per cent in July 2024.

However, the performance was higher compared to the 2.9 per cent recorded in June this year.

-- BERNAMA