INSTANT VIEW-Malaysia factory output up; first since Nov 2008

KUALA LUMPUR, Feb 10 (Reuters) - Malaysian industrial production grew by 8.9 percent in December from a year earlier, the strongest annual increase since February 2008 led by a pick up in exports.

The rise in December factory output was in line with the 9 percent gain seen in a Reuters poll.

Data released on Wednesday by the Statistics Department showed that industrial production, a measure of manufacturing, mining and electricity output, was up 4.6 percent from a month ago. The number is not seasonally adjusted.



ANALYST COMMENT

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ALVIN LIEW, ECONOMIST, STANDARD CHARTERED BANK

'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 normalize interest rates, starting with a 25 basis points hike in the next policy meeting in March.'

(Reporting by Julie Goh)

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