THE return of optimism among Malaysia’s manufacturers suggests an improvement in external trade performance and industrial activities in the second half of 2024 (H2 2024), said MIDF Research.
Outbound shipments of manufactured goods including electrical and electronics (E&E), refined petroleum, chemicals, and machinery and equipment are expected to expand faster in H2 2024.
“We expect a steady expansion of palm oil and mining exports amid stable global commodity prices.
“On that note, we reiterate our expectation for exports of goods to rebound and expand by 5.2% in 2024 from 2023’s contraction of 8%,” it said in a note.
Meanwhile, Public Investment Bank Bhd said the manufacturing sector is poised for positive growth in 2024, supported by promising global semiconductor market projections.
“E&E exports, comprising over 40% of Malaysia’s total exports, are expected to benefit significantly.
“Despite risks from geopolitical tensions and economic uncertainties among key trading partners, Malaysia’s exports are projected to rise by 5.4% this year,” it said.
Additionally, enhanced economic governance, reflected in improved competitiveness ranking, will further bolster this outlook.
Therefore, the investment bank has anticipated Malaysia’s purchasing managers’ index (PMI) to converge with global trends.
“It is expected to consistently exceed the 50-level mark throughout 2024, contingent on the stabilisation of global uncertainties,” it added.
The seasonally adjusted S&P Global Malaysia manufacturing PMI rose to 50.2 in May 2024 from 49 in April 2024, the first expansion since August 2022.
Output rose for the first time since July 2022 as new orders rebounded to end 20 consecutive months of decline.
In addition, exports orders peaked over a three-year period, while additional workload saw manufacturers increasing their workforce.
Input and output inflation rose in terms of prices. – June 5, 2024
