ZCZC
BCN-35
MALAYSIA-ECONOMY-MANUFACTURING
Malaysian manufacturing conditions continue to fall while other peers gain
momentum
KUALA LUMPUR, June 4, 2018 (BSS/Xinhua) – Malaysia’s manufacturing
conditions contracted for the fourth straight month to hit an 11-month low in
May, albeit ASEAN manufacturing growth gains pace in the month.
According to IHS Markit which compiled the data Monday, the headline
Purchasing Managers’ Index (PMI) for ASEAN rose from 51.0 in April to 51.5 in
May, with six of the seven countries covered by the survey indicating an
improvement in manufacturing conditions.
The six countries are Vietnam, the Philippines, Singapore, Myanmar,
Indonesia and Thailand.
Malaysia was the only country signaling a decline in the health of its
manufacturing sector, with its PMI falling from 48.6 in April to 47.6 in May,
the steepest deterioration since June last year.
“A fall in new orders was a key factor contributing to the downward
movement in the headline index. Moreover, the rate of contraction was the
strongest in nearly one-and-a-half years. Lackluster demand was cited by
panelists as the main reason behind lower new business,” said IHS.
Meanwhile, new export orders fell for the fourth successive month in May,
with the rate of decline moderated to the weakest in three months.
Commenting on the Malaysian Manufacturing PMI survey data, IHS Markit’s
economist Aashna Dodhia said, the PMI data suggested that weak demand
emanated from both the domestic and foreign markets.
“A key PMI finding was that the manufacturers retained strong projections
for output in the next 12 months, rooted in hopes that the new government
will spur business activity in the year head,” Dodhia added.
As for other ASEAN countries, Vietnam (53.9) overtook Myanmar (52.6) to
lead the ASEAN manufacturing PMI rankings, as growth in its manufacturing
sector picked up in May.
The Philippines also saw a faster improvement in operating conditions,
with its PMI advanced to 53.7 in May. Singapore and Indonesia built on their
April’s growth momentum as both countries saw their PMI rose to 52.8 and 51.7
respectively.
Thailand also returned to growth for the first time in three months, with
its PMI improved to 51.1.
BSS/XINHUA/HR/1450