THE economy has sustained positive growth in the first three quarters of 2023 and showed positive signs in October, led by industrial production and retail sales, the Statistics Department said.

It said the consistent performance had contributed to a 3.9% growth in the economy in the first nine months of 2023, in contrast to the 9.2% growth recorded in the same period in 2022.

Chief statistician Mohd Uzir Mahidin said the Industrial Production Index grew to 2.7% on year in October, an improvement from the preceding month’s -0.5%.

“This marked the most significant upswing since May 2023, predominantly driven by the robust performance in the mining sector.

“Simultaneously, the electricity and manufacturing sectors sustained their positive trends, recording increases of 5.8 per cent and 0.9 per cent, respectively,” he said in a statement on the Malaysian Economic Statistics Review Volume 12/2023 today.

However, the manufacturing sector’s sales value registered a 1.4% decline in October this year, influenced by a continued decrease in the petroleum, chemical, rubber and plastic products subsector, which saw a drop of 9.5%.

For the wholesale and retail trade sector, the monthly sales value in October reached RM142.3 billion, up 6.5% y-o-y, driven by the wholesale trade subsector, which expanded by 5.7%, or RM3.4 billion, to RM63.3 billion.

Subsequently, motor vehicles registered a growth rate of 19.1% (RM3 billion) while the retail trade subsector rose 3.9% (RM2.3 billion), he said.

On inflation, Uzir said inflation increased by 1.8% in October 2023, marking the lowest rate since April 2021, with the index reaching 130.9 compared with 128.6 in the corresponding month of the previous year.

“In November 2023, Malaysia’s inflation persists in its gradual ascent, registering a slower growth of 1.5%, with the index points recorded at 130.9 compared with 129 in the corresponding month of the preceding year.

“The Producer Price Index (PPI) slipped 0.3% in October 2023. In November 2023, the PPI recorded negative 1.5%,” he said.

On the trade front, Uzir said total trade contracted by 2.4% on year to RM239.5 billion in October.

Exports witnessed a 4.4% decline to RM126.2 billion, while imports experienced a marginal decrease of 0.2% to RM113.3 billion.

Consequently, trade surplus stood at RM12.9 billion, reflecting a 30.3% decrease from the previous year, Uzir said.

He said the labour market exhibited a 2% annual increase in the number of employed people, reaching 16.4 million in October.

“The labour force participation rate for October 2023 stood at 70.1%, marking a 0.4 percentage point increase from the 69.7% recorded in October 2022.

“The unemployment rate decreased by 0.2 percentage points to 3.4% as compared with the same month the previous year,” he said.

He said the Leading Index experienced an on year decrease of 0.2% to 109.2 points from 109.4 points the preceding year. – Bernama, December 29, 2023.