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Malaysia's industrial production is expected to continue its positive momentum for the rest of the year, following a 6.1% year-on-year increase in the industrial production index (IPI) in April. Economists are optimistic about the IPI's outlook, attributing it to the anticipated rebound in external demand and global manufacturing activities. This is expected to support the country's economic growth for 2024. The latest Purchasing Managers’ Index (PMI) report for May indicated a positive trend in the manufacturing sector, with the seasonally adjusted S&P Global Malaysia manufacturing PMI rising to 50.2. Key sectors such as electric and electronics are expected to benefit from the resurgence in global demand. Malaysia's manufacturing activity is also expected to improve, supported by strengthening external demand and the rise in global manufacturing PMI. Despite the positive outlook, downside risks remain due to US-China trade tensions, the ongoing Russia-Ukraine war, and the Middle East conflicts.
