QualampurAccording to Midf Amana Investment Bank BHD, Malaysia’s Industrial Production Index (IPI), which grows at a slow pace of year-to-year (YOY) in April, is expected to increase by 2.0 percent in 2025.
The investment bank said that it is maintaining its forecast for IPI, it was announced today by the Department of Statistics (DOSM) that the index has increased by 2.4 percent in the first four months (Jan-Ail 2024: 3.6 percent) of this year.
According to DOSM, IPI recorded an increase of 3.8 percent in 2024.
“After continuous uncertainties from high tariffs and acute trading stresses, the production of export-oriented products, particularly manufactured goods, weak external demand and slow global manufacturing activities will adversely affect.
“Nevertheless, a temporary boost for front loading and business activities may still support these weak areas that are exposed to external recession,” Midf Amaana said in a note.
It states that although the United States decision to prevent the implementation of mutual tariffs may be short -lived support, the future demand would be important to encourage progress from business negotiations to reduce the adverse effects of trade stress on outlook and production activities.
“Nevertheless, we maintain a positive growth (forecast) for IPIs because now we expect production, especially in domestic-oriented areas, to keep growing on the back of expanding domestic demand,” it said.
