PREVIEW: Malaysia Sep Indus Output Likely +10.7% On Yr

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Friday 5 November 11:50 PM

PREVIEW: Malaysia Sep Indus Output Likely +10.7% On Yr

KUALA LUMPUR (Dow Jones)--Malaysia's September industrial production index likely rose 10.7% on year, backed by strong export demand, eight economists surveyed by Dow Jones Newswires said.

The statistics department will publish preliminary September output data at 0401 GMT Monday.

Economists said strong export and import data in September signal robust manufacturing output during the month. The index measures production in manufacturing, electricity, and mining.

"Driven by strong exports, industrial production is likely to maintain last month's momentum. We project 10.8% driven by manufacturing and mining," Chee Seng Wong, economist at DBS Research in Singapore, said.

The industrial production index rose 10.7% in August.

He added that manufacturing output, which accounts for just over 70% of the index, will likely rise 11.5% on year, and that mining output will reflect record-high crude oil prices.

On Tuesday, the ministry of international trade and industry said September exports rose to a record-high MYR44.38 billion, up 28.8% from a year ago, mainly due to strong demand for electronics and crude oil. Malaysia is a small net exporter of crude oil.

Imports rose 34.9% on year to MYR37.07 billion, also a record high, and imports of intermediate goods accounted for 70.8% of the total value of imports.

September data released Monday will be preliminary, with further details expected at mid-month.

Following is a table of economists' forecasts:

September Industrial Output - Expectations

(On Year)

   ActionEconomics               +11.5%
   Citibank                      +10.0%
   Affin Securities              +10.2%
   DBS Economic Research         +10.8%
   GK Goh Research               +12.3%
   IDEAglobal                    +11.2%
   ING Research                  +11.0%
   Mayban Securities             + 8.9%

   Average Forecast              +10.7%

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