KUALA LUMPUR, Dec 12 — Industrial activities are expected to expand at a solid pace next year underpinned by the recovery in mining output and strong growth of domestic-oriented industries.
According to MIDF Research, the industrial production index (IPI) will grow will at 2.9 per cent next year slightly higher than this year’s 2.4 per cent.
“The slight betterment of commodity prices and the release of Petronas’s Floating Liquefied Natural Gas – 2 (PFLNG – 2) will support the rebound in mining output in 2020,” it said in its economic review report today.
It added that steady domestic demand and improve government as well as private investments would also spur domestic-oriented industries next year.
“Manufacturing output shall continue growing yet at slower pace next year due to global trade tension factor,” it said.
The country’s IPI for October showed it grew 0.3 per cent, according to a statement by the Department of Statistics Malaysia.
“This is the slowest pace since December 2015 and below market estimates of 1.6 per cent year-on-year. The slowdown is mainly due to further contraction in mining output and moderation in factory and electricity productions,” said MIDF. — Bernama
