Malaysian Goods Producers Remain Upbeat Over Next 12 Months

KUALA LUMPUR, March 1 (Bernama) -- Malaysian goods producers remained upbeat on the output prospects over the coming 12 months despite the current downbeat manufacturing picture, with forecasts of improved demand and planned new product launches supported optimism. Nevertheless, the degree of optimism was the weakest for three months, Nikkei Malaysia Manufacturing PMI said in a research note Friday. “Expectations towards output over the coming 12 months remained positive despite dipping since January. The health of Malaysia’s goods-producing economy deteriorated for a fifth successive month during February, with continued declines seen in both output and new orders. “Employment levels stagnated, while output charges stopped rising for the first time in eight months amid a fractional fall in operating costs. Sustained downturns in production in sales led companies to reduce purchasing activity and inventories,” it said. Joe Hayes, an economist at IHS Markit which compiles the survey said, February data pointed to a sustained contraction of Malaysia’s manufacturing economy, reflecting further falls in production and sales. “New orders decreased at one of the strongest rates across the survey history, as panellists reported unfavourable underlying demand. “Near-term manufacturing prospects appear downbeat, as firms opted to leave workforce numbers unchanged, scaled back input buying sharply and reduced inventories, suggesting that firms are bracing themselves for continued production cutbacks,” he said. -- BERNAMA