Manufacturing sector’s sales value increased by 3.3 per cent to RM146.8 billion in May 2023 – DOSM 

Inve$t | Market Sentiments | 14 July 2023

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According to the Department of Statistics Malaysia, the sales value of the Manufacturing sector increased by 3.3 per cent in May 2023 after recording a decline of 2.0 per cent in the preceding month. The expansion was bolstered by the strong growth of 17.3 per cent registered in Transport equipment & other manufactures coupled with the continuously increasing trend in Non-metallic mineral products, basic metal & fabricated metal products (8.7%); and Electrical & electronics products (8.2%). On month-on-month comparison, the sales value rebounded to 1.3 per cent as against a negative 7.2 per cent recorded in April 2023. 

The sales value of export-oriented industries which represented 71.6 per cent of total sales rebounded marginally by 0.2 per cent in May 2023 after registering a decrease in April 2023. Nonetheless, the domestic-oriented industries sustained positive momentum to record double-digit growth of 12.3 per cent in May 2023 (April 2023: 1.6%). As compared to the previous month, export and domestic-oriented industries advanced by 1.4 per cent and 0.9 per cent respectively after both industries registered a contraction of 7.2 per cent in April 2023. 

There were 2.36 million persons engaged in the Manufacturing sector in May 2023, which increased by 2.6 per cent as against 2.30 million persons registered a year ago. The increase was mainly contributed by the Food, beverages & tobacco products (5.9%); Electrical & electronics products (4.2%); and Wood, furniture, paper products & printing (2.5%) sub-sectors. As compared to the preceding month, the number of employees in this sector increased by 6.6 thousand persons to record a marginal increase of 0.3 per cent. 

In line with the increase in the number of employees, the salaries & wages paid in the Manufacturing sector rose by 4.0 per cent year-on-year, amounting to RM8.1 billion in May 2023. On a month-on-month comparison, the salaries & wages went up by 1.0 per cent from RM8.0 billion recorded in April 2023. Hence, the average monthly salaries & wages per employee was RM3,438 in May 2023, went up by 1.4 per cent as compared to a year ago while the sales value per employee increased by 0.8 per cent to record RM62,315. 

Overall performance for January to May 2023 showed the sales value of the Manufacturing sector amounted to RM741.2 billion, increased by 5.1 per cent as against the same period of the preceding year. During the same period, the number of employees added by 2.6 per cent to record a total of 2.36 million persons while salaries & wages grew by 4.1 per cent to RM40.6 billion. Consequently, during the period, the sales value per employee stood at RM314,636 which posted a growth of 2.5 per cent. 

Miti committed to creating high-value growth ecosystem to support investors – Zafrul 

According to Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of Investment, Trade and Industry (MITI), his ministry is committed to supporting current investors and potential investors by creating a high-value growth ecosystem. As the custodian and promoter of investments in Malaysia, MITI is focused on ensuring Malaysia remains a competitive destination for high-value investments which can deliver sustainable and holistic economic growth. 

Speaking at the launch of Volvo Trucks Malaysia’s first electric heavy duty prime mover, he said that in recognising global headwinds, MITI is intensifying efforts to increase the nation’s resilience and competitiveness, guided by the 12th Malaysia Plan, New Investment Policy (NIP) as well as the New Industrial Master Plan 2030 (NIMP2030).  

Both NIP and NIMP2030 policies aim to introduce institutional reforms around improving ease of doing business and developing industries to become more complex, high-tech and sustainable, aligned with national aspirations. To achieve this, MITI remains open to constructive feedback and welcomes investors to share their experiences and suggestions on how we can improve the manufacturing and industrial ecosystem in Malaysia. MITI is looking forward to hearing Volvo Trucks Malaysia’s inputs on this as a longstanding investor. 

To respond to growing digital trends post-pandemic, the National Automotive Policy 2020 (NAP2020) strongly underscores the development of new mobility solutions that are efficient, sustainable, and customer-centric. This includes the promotion of energy-efficient vehicles coupled with connected and autonomous vehicles, namely next-generation vehicles including electric vehicles (EV) as well as Mobility as a Service. Malaysia sees potential in the ASEAN EV market, which is expected to grow to RM11.77 billion by 2027.  

In Malaysia, the government is committed to driving the efforts of attracting EV investments and achieving the national target of 15 per cent of the total industry volume for EVs and hybrids by 2030. In this light, it is crucial to develop policies to support investment choices that not only tick the right boxes in terms of creating higher-paying jobs, but also provide long-term, sustainable economic stability. 

Eye On The Markets 

On Thursday (13July), the Ringgit closed at 4.5945 against the USD and 3.4651 to the Sing Dollar. On Monday (10July), the FBM KLCI opened at 1377.56. As at Thursday (13July) 5:00pm, the FBM KLCI was up 18.67 points for the week at 1396.23. Over in US, the overnight Dow Jones Industrial Average closed up 47.71 points (+0.14%) to 34,395.14 whilst the NASDAQ added 219.61 points (+1.58%) to 14,138.57. 

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