KUALA LUMPUR, May 11, 2009 (AFP) - Malaysian industrial output plunged 14.4 percent year-on-year in March as the manufacturing, mining and electricity sectors suffered a fall due to weak exports.

However, the industrial production index rose 6.2 percent compared with the previous month, the government's statistics department said in a statement.

The fall was also slower than the 15 percent fall expected by 13 economists polled by Dow Jones Newswires.

Manufacturing output plunged 19.6 percent from a year earlier, faster than the revised 18.5 percent decline in February.

Mining sector output fell 3.2 percent in March after dipping 7.3 percent the previous month. Electricity output contracted 8.9 percent, worse than the revised 5.5 percent plunge in February.

The government in March unveiled a stimulus package worth 16.2 billion dollars but warned the export-driven economy could still shrink by 1.0 percent this year.

Malaysia's central bank last month kept its key interest rate at 2.0 percent and said the economy was expected to contract markedly in the first quarter of the year.

Bank Negara said poor global economic conditions were adversely affecting Malaysia's key exports and industrial production, in turn hitting the labour market and private sector activity.