Industrial production in Malaysia grew 9.9 percent year-on-year in July, the slowest pace of growth since September 2003, Statistics Department data showed today.

Economists put the softer growth down to a high base of output a year ago.

"It is the lowest pace of growth since last September. This is due to the high base base effect of last year which saw a huge jump in output in the months of June-July," Suhaimi Saidi, an economist with AmSecurities told AFP .

Month-on-month output expanded 6.9 percent, supported by growth across all industrial sectors, the Statistics Department said.

In June output grew grew 13.3 percent year-on-year, but fell 6.9 percent month-on-month.

On track

Suhami noted that even with the softer output in July the country remained on track to meet the government's growth forecast of 6.5 percent, with his house projecting GDP (gross domestic product) to rise 6.8 percent.

On a sectoral basis in July, manufacturing grew 11 percent year-on-year, electricity rose 7.7 percent, while mining advanced 4.7 percent.

On a month-on-month basis, manufacturing output in July rose 8.0 percent, electricity was up 0.8 percent and the mining sector improved 4.2 percent.

For the first seven months of the year, industrial production rose 13.1 percent year-on-year, with manufacturing up 15.3 percent, electricity up 8.4 percent and the mining sector up 4.8 percent.