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| Double-digit expansion in Malaysia industrial output seen |
| 12-MAR-2010 Intellasia | Business Times |
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| 12 Mar, 2010 - 7:09:00 AM |
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Malaysia's industrial production is expected to return to double-digit growth in January after almost five years, in line with the sharp growth in exports, say economists.
A Business Times poll of 17 economists expects a 11 percent year-on-year growth for January.
The Statistics Department is expected to release the details today.
Standard Chartered Bank economist Alvin Liew said the industrial production index (IPI) for January may post its first double-digit growth since October 2004.
"The good reading is due to favourable base effects, the revival of external demand and the Chinese New Year effect as the festive holidays fell in January in 2009," he added.
Citi said the expansion phase will continue from December's numbers, reflecting favourable base effects and a more defined manufacturing/exports recovery.
"We are expecting a continued strong year-on-year growth in manufacturing IP from December's 12.9 percent on continued inventory re-stocking, possible reversal to positive year-on-year growth for mining from -0.2 in December and consistently robust growth in electricity IP (from December's 14.1%)."
OCBC economist Selena Ling said Malaysian economic indicators have been playing catch-up of late to the global recovery story, with Bank Negara Malaysia kick-starting the interest rate-hike cycle in Asia.
"The IP data should continue to improve as global purchasing managers' indices (indicators for the health of manufacturing sector) remain robust, aided by the low base last year," she said.
http://www.btimes.com.my/articles/ipi11a/Article/
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