Industrial output inthe country surged a better-than-expected 16.2 percent in May compared with last year despite Severe Acute Respiratory Syndrome (Sars), the statistics department said today.

Production rose 9.9 percent in the first five months of 2003 compared with January-May in 2002.

"The increase in the industrial production index for the current month (May) was due to the positive growth in the indices of all sectors," it said in a statement.

The statistics department said the mining sector rose 26.7 percent, manufacturing was up 15.9 percent and electricity gained 4.8 percent.

Neutralising impact

Azrul Azwar, economist with MIDF Sisma Holdings Sdn Bhd described the increase as "way beyond my expectation."

"I was looking at 9.3 percent. It is beyond my expectation. It proves the ability of the manufacturing sector to neutralise the Sars impact on the services during the second quarter."

"The uptrend can be maintained but I am not sure if it can maintain the current high speed pace," he said.

Azrul said despite the surge in output, "I am holding to the 3.9 percent economic growth for 2003." - AFP