KUALA LUMPUR: MIDF Research remains optimistic about Malaysia’s trade outlook and the manufacturing sector’s growth prospects, given improved demand for the country’s exports.
In a note yesterday, the research firm said it expects Malaysia’s production activity to continue to grow, supported by the recovery in external demand.
In the seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) for November, export orders from international markets grew, likely due to growing demand across the Asia-Pacific region.
Meanwhile, the index slipped further to 49.2 in November compared with October’s 49.5, the lowest reading in seven months and extending the contraction to six consecutive months.
The decline in November, while reflecting broad-based weaknesses in the manufacturing sector, was primarily attributed to contractions in new orders, output and inventory levels.
Notably, new orders registered the sharpest fall in seven months. Backlogs of work stabilised, reaching a four-month high, largely due to limited production capacity.
Purchasing activity, along with stocks of inputs and finished goods, shrank at a slower rate. Additionally, delivery time continued to lengthen for the seventh straight month, largely explained by supply-chain disruptions. — Bernama
