Malaysia's GDP expected to grow at moderate pace

Malaysia's gross domestic product (GDP) is expected to grow at a moderate pace following the poor Industrial Production Index (IPI) in March, economic analysts said Friday.

Alliance Research Sdn Bhd, a local research firm said in its note that Malaysia's IPI declined by 0.2 percent in March this year when compared with the same month last year due to decreases in the manufacturing and mining indices.

It said the drop in the March IPI came after a poor performance in gross exports for the month under review, which plunged for a second consecutive month.

"the second straight drop in manufacturing activity, in particular IPI overall, may suggest the expected recovery in economic activities may well be delayed to the later part of the year," it said.

The research firm said the trend was also in line with the recent softening in regional economies due to weaker overseas demand from major advanced economies.