Moody's Analytics remained upbeat about Malaysia's industrial output in the quarters ahead following the bullish October performance which it said was a "surprise".

In the latest Asia-Pacific Weekly Highlights and Preview, it reported that Malaysia's industrial production rose 2.1% year-on-year in October, beating its 1.7% forecast.

"Industrial output should remain resilient in the quarters ahead, even if a hostile turn in the US trade policy hits export-oriented manufacturers," it said.

The increase in October production was spearheaded by the manufacturing sector which expanded by 3.3%, up from 3.2% in September 2024, and a 2.5% rise in electricity output (September 2024: 3.9%).

Mining sector production, however, fell by a further 2.8% against a negative growth of 2.2% in the previous month.