Malaysian Manufacturing: A November Snapshot

In November, the Malaysian manufacturing sector faced a bit of a slowdown, with demand conditions remaining subdued. According to S&P Global, the Malaysia Manufacturing PMI dipped slightly to 49.2 from 49.5 in October, indicating a marginal moderation in the sector’s health.

Despite this, the PMI data suggests that the final quarter of 2024 will likely continue to see GDP growth, albeit at a slower pace than previously observed.

Key Highlights:

• New Orders and Production: Both new orders and production saw declines. New orders fell for the fourth time in five months, marking the steepest decline since April. Production eased at a modest pace, with the rate of reduction slightly less severe than the previous month.

• Employment: Employment levels largely stagnated, with firms choosing not to replace voluntary leavers.

• Export Orders: On a brighter note, firms reported stronger overseas demand, leading to an increase in new export orders for the eighth consecutive month2. This growth was largely attributed to demand from the Asia-Pacific region. In fact, exports increased by 3.9% to RM233.74 billion, with manufactured goods contributing RM196.75 billion.

• Input Costs and Inflation: The rate of input cost inflation dropped to a nine-month low, resulting in stable output charges4. Despite weaker demand for inputs, delivery times extended for the seventh consecutive month, with disruptions in the Red Sea cited as a contributing factor.

• Confidence and Outlook: Confidence in the 12-month outlook remained solid, driven by hopes for improved market demand. However, the overall level of confidence was consistent with October but remained below the long-term average due to concerns about the timing of a domestic demand recovery.

The S&P Global Malaysia Manufacturing PMI is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers, stratified by sector and company workforce size based on contributions to GDP.

While the sector faces challenges, the continued growth in export orders and easing input cost inflation provide some optimism for the future. Let’s hope for a stronger rebound in the coming months!

PLASTIC MOLDING & BLOW MOLD, R&D, PROTOTYPE MOLD (SOFT TOOL, ALUMINIUM MOLD, SILICON MOLD& PLASTIC MOLD), DIE-CASTING, METAL STAMPING, MOLD DESIGN, MOLD BASE, MOLD FABRICATION AND  MOLD TESTINGOPT, VAPE & E-CIGARETTE  EMS ELECTROFORMING/NICKEL INSERT,  ผลิตแม่พิมพ์พลาสติก ฉีดพลาสติก 模具制造商プラスチック金型設計、モルドベース、型作成、整形try、電鋳入れ子NEW! METAL 3D PRINTING SERVICE