Malaysia’s IPI Up 3.5 Per Cent, Economy Still Strong

THE Statistics Department announced last week that Malaysia’s Industrial Production Index (IPI) grew moderately by 3.5 per cent in January 2017.

What does this mean? How will it affect the rakyat?

s take a look.

What is IPI?
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IPI is a method used by the Statistics Department to look at whether our factories and manufacturers are doing okay or not.

As an example, the department will receive statistics from manufacturers such as electrical and electronics, car factories, furniture companies, food factories and others.

The department will then measure the production of car companies such as Proton and Perodua and receive information on how many cars it rolls out in a month and how many it sells in a month.

It will also receive information from electrical and electronic companies on how many televisions, airconditioners and washing machines are exported.

All this is measured and is called the IPI.

When KPI is high, our factories are producing and good for the economy.

If KPI is low, our factories are producing low and not good for the economy.

IPI is up is because our factories are doing good business
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The Statistics Department said the IPI is up is because the sales value of the manufacturing sector in January 2017 recorded RM61.2 billion which is an increase of 10.7 percent or RM5.9billion as compared to RM55.3 billion in the same month a year ago.

Total workers engaged in the sector increased to 1,044,346 persons compared to 1,030,153 persons in January 2016.

Salaries and wages paid increased by 1.5 percent or RM49.3 million to RM3.3 billion while productivity increased by 9.2 percent to record RM58,580 from a year ago.

This shows that a lot of our factories and manufacturing plants are doing risk business.

Since business is good, factories need to employ more and more people and paying out more and more in salaries.

All this is good for the rakyat as they get to earn a living and provide for the families.

When IPI is up, economy is strong in all sectors
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When we see the IPI going up every month, this is a good sign.

What this means is that our factories continue to operate, continue to produce and continue to sell and continue to make profits.

The factories ranging from automotive, furniture, electrical and electronics and so many others are doing good business.

What this means is that the rakyat continue to have jobs working at the factories to make a living.

Malaysians are able to work, contribute to the country’s economy and able to earn salaries and provide food and shelter for their families.

The labour market sees modest recovery as economy improves
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MIDF Research said the improving IPI also shows that more and more Malaysians are working.

If before the rakyat are jobless or cannot find work, the situation is getting better.

As factories and manufacturing plants make better sales, they will need to hire more people.

And this will be good for the economy and the rakyat.

The number of employed people increased to 514,100 in January.

A year ago in January, the jobless figure totalled 501,500.

MIDF said Malaysia’s labour market is showing signs of modest recovery in tandem with the improving economic conditions in the country.

A higher IPI shows that there is more demand for our products from overseas
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MIDF Research said now that more and more Malaysians are working, this shows that the country’s economy is still strong and the country’s trade activities overseas continue to improve.

Demand for overseas for products made by Malaysian manufacturers such as televisions, washing machines and airconditioners are getting stronger.

To make all this products, the manufacturers need to hire more and more workers.

And the rakyat can help the economy by working at these factories.

Economic outlook is still positive
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MIDF said the Malaysian economy is still strong and is expected to grow at a steady pace.

Among others, improvement in global economic activity and domestic spending will add towards steady economic growth this year.

Manufacturing sector is expected to benefit from the improving global demand predicting Malaysia to grow at 4.3 percent in 2017,” it added.

“Thanks to improving global demand and increase in commodities prices, Malaysian external trade perform better since middle of 2016,” MIDF said.

As a result, Malaysia’s good trade activities with other countries will provide jobs for Malaysians and support the country’s economy.

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