Business

Malaysia’s manufacturing may have bottomed out, outlook optimistic: AmBank

Gradual reopening of economy, among others, should uplift sector, says research firm

Updated 5 years ago · Published on 04 Oct 2021 7:30PM

Malaysia’s manufacturing may have bottomed out, outlook optimistic: AmBank
AmBank Research says the gradual reopening of the economy, steady global growth, upcycle from electrical and electronics, firm commodity prices, support from resource-based manufacturing activities, and stimulus measures should gradually lift up manufacturing activities. – Bernama pic, October 4, 2021

KUALA LUMPUR – Malaysia’s manufacturing sector may have bottomed out and manufacturers are optimistic on their outlook, according to AmBank Research.

“Supported by the increasing vaccination rate crossing the 85% level for adults and expected to reach 90% by October, the gradual reopening of the economy, steady global growth, upcycle from electrical and electronics, firm commodity prices, support from resource-based manufacturing activities, and stimulus measures should gradually lift up manufacturing activities,” it said in a statement.

The research firm also noted the adverse effects of the implementation of the movement control order that extended into September. 

It said although the headline IHS Markit Malaysia manufacturing Purchasing Managers’ Index remained in the contraction region of below 50 for the fourth consecutive month, the September reading improved to 48.1, the highest since June.

“The September IHS Markit Manufacturing PMI improved to 48.1, albeit still in the contraction region for the fourth consecutive month. The slower contraction was supported by lower contraction of output volumes, new order inflows, and export orders,” it added.

“While we expect the economic performance for the third quarter of 2021 to be in a contraction of around 3.5%, it is possible for the economy to improve modestly in Q4 2021 to around 2%. We project the economy to grow around 3.0% to 3.5% for the full year 2021.” – Bernama, October 4, 2021

Related News

Off beat / 1mth

Time to look beyond manufacturing and tourism sectors, says Penang CM

Business / 6mth

US investigates manufacturing overcapacity in 15 economies, including Malaysia, EU

Malaysia / 8mth

China remains major player in Penang’s services and manufacturing sectors

Culture & Lifestyle / 1y

Jagdeep: Digital skills and robotics vital for future workforce

Business / 1y

Future of Penang’s manufacturing sector remains uncertain amid US tariffs threat

Malaysia / 1y

No retrenchments, shutdowns in Penang’s manufacturing sector due to US tariffs

Spotlight

Malaysia

Five fatal helicopter crash victims honoured in Sarawak state awards

Malaysia

No Malaysian is left behind; Budget 2027 puts people first - Anwar  

Malaysia

Panama hit by 6.4-magnitude earthquake

Malaysia

Haze blankets 33 areas with unhealthy air

Malaysia

Malaysia’s 2027 Budget is a steady one: people-oriented continuity rather than bold reform

Malaysia

Budget 2027: What is in it for me?

Malaysia

Budget 2027 steps up Sabah, Sarawak funding by RM2.2b amid push for development parity

Malaysia

Budget 2027: Maternity leave entitlement increased, minimum pension raised to RM1,350

You may be interested

Business

Budget 2027 targets foreign e-commerce platforms, channels billions into local firms and startups

Business

Oil slips on Trump’s Iran remarks, but supply risks and strong US dollar keep markets on edge