Manufacturing sector to see robust recovery in second half of 2024

Manufacturing sector to see robust recovery in second half of 2024

08 Feb 2024

Malaysia’s manufacturing sector is expected to see a robust recovery in the second half of 2024 (2H24), and the manufacturing index is forecasted to expand 4.6 per cent this year, said Kenanga Investment Bank Bhd (KIB).

In a note, it said the manufacturing sector’s recovery will be driven by the technology upcycle in 2H24 and China’s gradual post-pandemic recovery.

“The bank also expects the gross domestic product (GDP) growth to expand further to 4.9 per cent this year.

“We maintain our GDP growth projection for the fourth quarter (4Q) of 2023 at 3.7 per cent compared to 3.4 per cent advance estimates by the Department of Statistics Malaysia (DOSM),” it said.

Meanwhile, in a separate note, Public Investment Bank Bhd anticipates improved growth prospects for the industrial sector in 2024.

The research said in 2023, the manufacturing and mining sectors demonstrated modest expansions of 0.7 per cent and 0.8 per cent, respectively, while the electricity sector experienced a growth rate of 2.5 per cent.

“The manufacturing sector declined to 1.4 per cent year-on-year in December compared to 0.1 per cent in November. Meanwhile, the electricity sector grew by 4.6 per cent in December compared to 4.3 per cent in November,” said the research house.

Source: Bernama