KUALA LUMPUR, NOV 10 (XINHUA/APP)/DNA:Analysts have raised Malaysia’s industrial production index (IPI) forecast after Malaysia’s September IPI rose higher than projections at 5.7 percent.
MBSB Research said in a recent note that it has revised its forecast for Malaysia’s IPI growth for 2025 to 3.2 percent from the previous forecast of 2 percent, taking into account the more resilient IPI growth in recent months.
RHB Investment Bank also said in a note that, given the stronger-than-expected year-to-date IPI performance, recovery in mining output, and improvement in external trade, it has revised Malaysia’s full-year IPI projection upward to 3.6 percent year-on-year from 3.2 percent previously, compared to the current year-to-date growth of 3.1 percent.
“The sustained momentum in manufacturing and the turnaround in export performance for September reinforce our view that the final GDP estimate for the third quarter will likely remain at 5.2 percent year-on-year, with potential upward revisions to our full-year 2025 GDP forecast to 4.5 percent,” the research house noted.
According to RHB, the manufacturing sector is expected to receive near-term support from sustained strength in domestic-oriented industries, easing tariff-related risks, continued resilience in electrical and electronics (E&E) exports, and steady investment activity.
Hong Leong Investment Bank Research said in a note on Monday that Malaysia’s industrial activity has continued to strengthen since bottoming at 0.3 percent year-on-year in May, supported by a resilient manufacturing sector and a recent recovery in the mining sector.
Although caution among manufacturers amid higher U.S. tariffs, elevated geopolitical tensions and risks of economic slowdown in major economies, the research house noted that Malaysia’s diversified economic structure is expected to help cushion growth against external headwinds.
/DNA:Analysts have raised Malaysia's industrial production index (IPI) forecast after Malaysia's Septembe){kind=link}