Commerzbank analysts note that January industrial production rose 5.9% year-on-year, the strongest since mid‑2024, driven by export-oriented manufacturing and semiconductor demand. Malaysia’s status as a net crude Oil exporter and relatively stable MYR help buffer regional contagion, though they caution that imported petroleum products remain a vulnerability.

Stronger IP and crude exports aid MYR

"January industrial production was slightly firmer than expected at 5.9% yoy (Bloomberg consensus: 5.0%) vs 4.8% in December. This was the strongest reading since July 2024."

"Production is expected to hold up this year on expectations of continued strong global demand for both leading-edge and trailing-edge semiconductors, aided by investment in data centres."

"Compared to its Asian peers, MYR has been relatively stable amid the spike in oil prices."

"Malaysia is a net crude oil exporter and domestic refineries meet around 66% of refined oil demand. Nevertheless, one caveat is that Malaysia still imports petroleum products."

"MYR is unlikely to escape contagion from the weakness in regional currencies but it is likely to be less susceptible to a further rise in oil prices."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)