Sustained E&E demand will support export-oriented industries

THE manufacturing sector, which is the main contributor to Malaysia’s gross domestic product (GDP), is expected to grow 4.1 per cent next year.

Growth in export-oriented industries would be supported by sustained demand for electrical and electronics (E&E) goods despite lower production of petroleum-related products.

Growth in consumer and construction-related industries would continue to be supported by favourable domestic demand.

The value-added of the manufacturing industry rose 4.3 per cent in the first six months of this year.

Export-oriented industries grew 4.2 per cent, supported by higher production of E&E and resourcebased products in the same period.

Meanwhile, the growth of domestic-oriented industries was sustained at 3.3 per cent following steady construction activities and consumer spending.

The average wage per employee continued to increase 4.1 per cent to RM3,076 while the employee numbers fell 0.1 per cent largely due to automation to replace unskilled workers.

E&E production continued to expand 6.6 per cent during the first seven months of this year while sales rose significantly by 10.2 per cent to RM1,26.8 billion from RM115.1 billion in the same period last year.

The electronics product output, particularly printed circuit boards, increased favourably by 12.3 per cent, while semiconductor devices and peripheral equipment rebounded 5.3 per cent and 2.2 per cent, respectively.

The output of refined petroleum products rose 3.1 per cent in the first six months of the year compared with two per cent in the same period last year, following higher external demand.

However, the output of chemicals and chemical products grew at a slower pace of four per cent due to lower production of industrial and medical gases.

The output of rubber products continued to expand 5.4 per cent, largely driven by higher demand for rubber gloves.

Rubber gloves output grew significantly by 6.4 per cent as it benefited from lower average selling prices of natural rubber.

The demand for rubber gloves also grew due to increasing hygiene awareness in emerging markets, especially China, India and Latin America. The demand was also attributed to the outbreak of infectious diseases.

Meanwhile, the production of rubber tyres for vehicles rose 5.2 per cent due to growing demand from the automotive industry, particularly from United States, Australia and Thailand.