KUALA LUMPUR, Jan 10 (Bernama) -- MIDF Amanah Investment Bank Bhd expects Malaysia’s Industrial Production Index (IPI) to sustain positive growth in 2025, projected at 3.0–4.0 per cent, following an estimated 3.4 per cent expansion in 2024.
The investment bank highlighted a potential upside to its 2024 IPI growth estimate, citing stronger-than-expected manufacturing output in November 2024.
Over the first 11 months of 2024, IPI growth averaged 3.7 per cent year-on-year.
“We expect production activities to grow further as we assume domestic economic growth will remain positive and external demand will continue to increase, despite a few concerns and uncertainties,” MIDF Amanah said in a research note today.
However, the bank warned of potential headwinds for manufacturing firms if demand weakens.
It said external demand and global trade could face challenges from escalating geopolitical and trade tensions, disruptions in global supply chains, and rising production costs.
Malaysia’s IPI rose 3.6 per cent year-on-year in November 2024, driven by sustained growth in the manufacturing sector.
According to the Department of Statistics, November marked the eleventh consecutive month of IPI growth. Manufacturing output expanded by 4.6 per cent, up from 3.3 per cent in October, while electricity output increased by 3.9 per cent.
-- BERNAMA
