Summary Malaysia's manufacturing sector set for positive growth with semiconductor rebound www.nst.com.my
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Malaysia's manufacturing sector is expected to grow in 2024, driven by a rebound in the semiconductor industry, with the Purchasing Managers' Index (PMI) indicating improved activity and the electrical and electronics (E&E) exports benefiting from the semiconductor recovery.
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Key Points
- Malaysia's manufacturing sector is set for positive growth in 2024, driven by a rebound in the semiconductor industry
- The country's purchasing managers' index (PMI) is expected to consistently stay above the 50-level mark throughout 2024, indicating an improvement in the manufacturing sector
- Electrical and electronics (E&E) exports, which account for over 40% of Malaysia's total exports, are expected to benefit significantly from the favorable projections for the global semiconductor market
- Malaysia's exports of goods and services are projected to grow by 5.4% in 2024, supported by improved economic governance and competitiveness
- Despite risks from geopolitical tensions and economic uncertainties, Malaysia's exports are expected to increase by 5.4% this year
Summaries
23 word summary
Malaysia's manufacturing to grow in 2024 driven by semiconductor rebound. PMI above 50 indicates improved activity. E&E exports to benefit from semiconductor recovery.
47 word summary
Malaysia's manufacturing sector poised for growth in 2024 driven by semiconductor rebound. PMI to stay above 50, indicating improved activity. E&E exports, 40% of total, to benefit from semiconductor recovery. Manufactured goods exports forecast to rise 5.5%, overall exports 5.4%. Improved governance and competitiveness support positive outlook.
115 word summary
Malaysia's manufacturing sector is poised for positive growth in 2024, driven by a resurgence in the global semiconductor market. The country's purchasing managers' index (PMI) is expected to stay above the neutral 50.0 mark, indicating improved manufacturing activity. The rebound is driven by increased new business, production, and job creation, though firms remain cautious. Malaysia's electrical and electronics (E&E) exports, which account for over 40% of total exports, are expected to benefit significantly from the semiconductor market recovery. The Ministry of Finance anticipates a 5.5% increase in manufactured goods exports, and overall exports are projected to grow by 5.4% in 2024. Improved economic governance and competitiveness further support the positive outlook for Malaysia's manufacturing sector.
415 word summary
Malaysia's Manufacturing Sector Set for Positive Growth with Semiconductor Rebound
Malaysia's manufacturing sector is poised for positive growth in 2024, driven by a resurgence in the global semiconductor market. According to PublicInvest, the country's purchasing managers' index (PMI) is expected to align with global trends and consistently stay above the neutral 50.0 mark throughout the year, provided global uncertainties stabilize.
The bank noted that the global manufacturing PMI increased to a 22-month high of 50.9 in May, marking the fourth consecutive month above the 50.0 level. In May 2024, Malaysia's PMI rose to 50.2 from 49.0 in April, surpassing the 50.0 mark and indicating a renewed improvement in the manufacturing sector after 20 months of moderation.
The improvement in Malaysia's manufacturing sector was driven by a resurgence in new business and production activities. Job creation also emerged for the first time in five months, though firms showed caution in input procurement due to only marginal gains in new orders. Simultaneously, business sentiment weakened.
PublicInvest stated that the country's manufacturing sector is set for positive growth this year, bolstered by favorable projections for the global semiconductor market. Electrical and electronics (E&E) exports, which comprise over 40% of Malaysia's total exports, are expected to benefit significantly from this trend.
The Ministry of Finance anticipates a 5.5% increase in manufactured goods exports for 2024, reinforcing optimistic expectations. The investment bank observed that despite risks from geopolitical tensions and economic uncertainties among key trading partners, Malaysia's exports are expected to increase by 5.4% this year.
PublicInvest added that improved economic governance, as seen in the enhanced competitiveness ranking, further supports this positive outlook. Additionally, the bank projects Malaysia's exports of goods and services to grow by 5.4% in 2024.
The rebound in the semiconductor industry is a crucial factor driving the positive growth in Malaysia's manufacturing sector. The country's E&E exports, which are a significant contributor to its overall exports, are poised to benefit from the global semiconductor market's recovery.
The Ministry of Finance's projection of a 5.5% increase in manufactured goods exports for 2024 underscores the optimistic expectations for the sector. Despite the risks posed by geopolitical tensions and economic uncertainties, Malaysia's exports are expected to grow by 5.4% this year, indicating a resilient and adaptable manufacturing industry.
The improved economic governance and enhanced competitiveness ranking further bolster the positive outlook for Malaysia's manufacturing sector. With the semiconductor rebound and favorable export projections, the country's manufacturing industry is set to experience a period of sustained growth in 2024.