Upturn In Global Semiconductor Sales A Boost To Malaysia's Manufacturing Sector

KUALA LUMPUR, Oct 27 (Bernama) -- Malaysia’s manufacturing sector is projected to expand further by 5.5 per cent versus the 4.4 per cent registered in 2016, lifted by an upturn in the global semiconductor sales, coupled with higher demand for consumers products and construction materials. During the first eight months, production increased 6.4 per cent, while sales rebounded significantly by 15.6 per cent to RM500.2 billion (US$1 = RM4.24) as compared with 2016, which saw production grow four per cent.But, sales contracted by 0.7 per cent at RM432.8 billion. In the Economic Report 2017/18 released by the Ministry of Finance (MOF) Friday, output of export-oriented industries rose 6.5 per cent from 4.3 per cent in 2016, led by an upturn in the global electronics cycle and further enhanced by strong demand for resource-based products. Off-estate processing turned around to record double-digit growth of 13.2 per cent between January and August this year, whilst last year, it contracted by 13.7 per cent. "The performance of the industry was supported by higher activity in palm oil and palm kernel oil processing and the significant growth was attributed to recovery in crude palm oil production following the waning effect of El Nino," the MOF said. For domestic-oriented industries, it almost doubled at 6.2 per cent in the first eight months, vis-a-vis the 3.4 per cent recorded last year. For this year, it benefited from vibrant consumption and construction activities. The MOF report was released in conjunction with the 2018 Budget announcement by Prime Minister Najib Tun Razak in Parliament Friday. Under domestic-oriented industries, transport equipment bounced back and registered growth of 4.7 per cent as compared to a decline of 3.1 per cent in the previous year. The growth in transport equipment was backed by a higher production of parts and accessories for motor vehicles as well as repair and maintenance of transport equipment. Vehicles sales volume turned around by 3.9 per cent to 384,730 units versus 370,152 units (-14.8 per cent) from January to August 2016. The MOF also said output of other food products, supported by production of cakes, bread and other bakery as well as biscuits and cookies due to demand from households, helped boost food products manufacturing, which jumped by 11.2 per cent from January-August as compared to 6.3 per cent last year. -- BERNAMA