THE findings of Malaysian Institute of Economic Research's (MIER) sectoral survey for the second quarter this year were mixed, with growth in the tourism and automotive indices, and decline in the retail trade and residential property indices.
Arresting the tsunami-induced drop in the first quarter this year, the Tourism Market Index inched up 2.4 percentage points from the preceding quarter to 125.1 in the second quarter, but was still weaker by 9.7 percentage points year-on-year.
The Index, which hovered above the 100-point benchmark for eight consecutive quarters, indicated that expansionary forces were still at play, MIER said. Also, the implementation of the five-day work week for civil servants should provide a lift for domestic tourism, it added.
The Automotive Industry Index rose to 123.0 in the quarter under review, up 14 percentage points from 109.0 in the first quarter this year. MIER said: “Despite the moderate economic growth, the launch of attractive new models at competitive prices and appealing financing terms continued to buoy the auto industry.”
MIER said the industry would map out strategies and measures to enhance the competitiveness of Malaysia's auto sector in its efforts to make the country a stronghold in the regional motor industry.
On the other hand, the Retail Trade Index shed 6.8 points quarter-on-quarter to 100.0 points in the second quarter this year.
The Residential Property Index plunged 12.4 points from the preceding quarter to 116.8, and fell 9.1 points year-on-year. The survey showed that residential property builders were cautiously confident about their prospects in the coming months.
Did you find this article insightful?