Slower Industrial Activity But Manufacturing Still Strong

Economic Research	9 June 2017
Malaysia
Economic Update
Slower Industrial Activity But Manufacturing Still Strong The Industrial Production Index (IPI) slowed to 4.2% YoY in April, from +4.6% in March, on the back of declines in mining and electricity output. Nevertheless, the April pace remained near the average of 4.3% growth for 1Q17. We envisage real GDP to pick up to 4.8% for 2017, vs +4.2% in 2016, firstly, on a stronger-than-expected recovery in exports, that could boost overall economic activity. Secondly, we expect a pick-up in domestic demand, as higher export growth would trickle down to an improvement in consumer spending and private investment. Another factor would be an expected modest increase in public spending and investment. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184