Malaysia's industrial growth resilient despite AI headwinds: economists
KUALA LUMPUR: Malaysia's industrial growth will remain supported by resilient domestic demand and sustained global technology demand despite potential headwinds to the artificial intelligence (AI) investment cycle, said Hong Leong Investment Bank Bhd.
KUALA LUMPUR: Malaysia's industrial growth is expected to continue despite potential challenges to the artificial intelligence (AI) investment cycle, according to economists at Hong Leong Investment Bank Bhd. Felicia Ling and Chong Lih Herng noted that global technology demand will remain strong, providing a foundation for the country's industrial activity in the near term.
The latest industrial production data revealed positive momentum, with the industrial production index (IPI) increasing 6.3% year-on-year (YoY) in September, surpassing the previous month's 5% growth. The stronger performance was driven by improved manufacturing and electricity output, which outweighed a decline in mining production.
While global manufacturing purchasing managers' index (PMI) slightly decreased to 52.6 in October from 53 in September, new orders, employment, and export orders remained near recent peaks. Despite these concerns, economists remain confident that global tech demand will remain expansionary, supporting Malaysia's industrial growth.
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