Malaysia: Export Pickup in December 2009

The Statistics Department stated that Malaysian industrial production grew by 8.9 per cent in December compared to the same period in 2008. This is the strongest annual increase since February 2008 led by a pick up in exports.The rise in factory output in December was also in line with the 9 pct gain as reflected in the Reuters poll.

From the data released today of industrial production-a measure of manufacturing, mining and electricity output-it was up 4.6 per cent from a month ago.

Standard Chartered Bank’s economist Alvin Liew said that “output expanded more than expected.”

“Going forward, we think the favourable base effect and the gradual external demand recovery should bode well for industrial production in the first half of the year. The domestic economy is also set to benefit from the impact of the government’s stimulus packages and the recovery in global demand.

“Given the improvement in economic conditions, we are likely to see the central bank on track to normalise interest rates, starting with a 25 basis points hike in the next policy meeting in March."

Let us hear the rate increase from Bank Negara Malaysia then.