Malaysia's industrial output in April beat market expectations and bucked the regional trend as it rose 11.8 percent year-on-year, analysts said after the release of government statistics today.

The key manufacturing sector in April expanded 12.7 percent year-on-year, mining grew 9.8 percent, and electricity rose 7.0 percent, the Statistics Department said in a statement.

Month-on-month, the April industrial production index (IPI) rose 6.7 percent due to a 9.4 percent gain in the manufacturing sector index, which more than offset the 2.3 percent decline in the mining sector and the 1.2 percent fall in the electricity sector.

Azrul Azwar, an economist with MIDF Sisma Securities, said the 11.8 percent growth was far beyond the 2.0-3.0 percent widely expected by economists.

"The figures are way above market expectations. While other countries in the region have reported contractions, Malaysia has bucked the regional trend," he told AFP .

South Korea reported a 1.9 contraction year-on-year, Taiwan 0.7 percent and neighbouring Singapore 7.2 percent, he said.

Rise in domestic industries

Regional industries had been hurt by the outbreak of the deadly Severe Acute Respiratory Syndrome (Sars) but it did not appear to have had a significant effect on Malaysia's manufacturing sector, he said.

"One explanation could be that domestic industries have gained ground against export-oriented industries," he said.

"As a result I have now revised my growth forecast for 2003 from 3.3 percent to 3.8-3.9 percent," he said.

The central bank has put its 2003 growth forecast at 4.5 percent.

In March, the IPI rose 5.0 percent year-on-year but fell 1.8 percent from February.

In the four months to April, the IPI rose 8.4 percent year-on-year, with positive contributions from all indices led by the manufacturing sector, which gained 8.9 percent; electricity, which rose 7.3 percent; and mining, which advanced 6.7 percent, the Statistics Department said. - AFP