KUALA LUMPUR, Jan 11 (NNN-Bernama) — Malaysia’s Gross Domestic Product (GDP) growth is expected to expand further between 5.5 per cent to 6.0 per cent in 2022, driven by encouraging manufacturing index growth, said Kenanga Investment Bank Bhd.
In a research note Tuesday, the investment bank also retained its 2021 GDP growth forecast range at 3.5 per cent to 4.0 per cent.
“The 2021 manufacturing index growth will likely register above our 8.5 per cent forecast and is expected to sustain its momentum in 2022.
“We expect manufacturing output growth to maintain in 2022, driven by export industries with trade activities continuing to expand on the back of a global economic recovery, and as domestic demand steadily recovers amid a stable COVID-19 condition,” it said.
However, Kenanga said the downside risks remained from a potential new wave of local COVID-19 cases due to the Omicron variant.
The Department of Statistics Malaysia on Monday revealed that the Industrial Production Index (IPI) increased 9.4 per cent year-on-year (y-o-y) in November 2021, attributed by the increment of 11.3 per cent in the manufacturing index, 5.1 per cent in the electricity index and 3.7 per cent in the mining index.
Manufacturing index growth continued to accelerate by 11.3 per cent in November 2021 compared to 8.0 per cent in October 2021 on a low-base effect, in line with a further expansion in exports growth and manufacturing sales growth.
According to the Statistics Department, Malaysia’s manufacturing sales in November 2021 rose 18.8 per cent y-o-y to RM142.4 billion (US$33.95 billion).
— NNN-BERNAMA