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KUALA LUMPUR: Malaysia’s manufacturing sector sales reached RM921.5 billion in the January-June 2024 period, increasing by 3.7% versus the 3.5% in the same period a year ago. Department of Statistics Malaysia (DOSM) Chief Statistician Datuk Seri Mohd Uzir Mahidin said the sector’s headcount was up by 1% to a total 2.37 million while salaries and wages grew by 1.3% to RM49.3 billion. “Sales value per employee was RM388,904, which is a 2.7% growth,” he said. The second quarter of 2024 (2Q 2024) registered sales of RM464.2 billion, reflecting a growth of 5.7% (1Q 2024: 1.8%) which was attributed to the electrical and electronics (E&E) products (7.3%) and the food, beverages and tobacco (8.2%) sub-sectors. “Furthermore, the number of employees and salaries and wages paid during the quarter went up by 1% (1Q 2024: 0.5%) and 1.4% (1Q 2024: 1.2%) respectively,” he added. Mohd Uzir said sales for the sector remained on steady growth with a 5.9% rise to reach RM156.1 billion in June 2024, primarily driven by the E&E products sub-sector, which grew 7.1% after registering 12.2% growth in May 2024. “The growth was also supported by the food, beverages and tobacco sub-sector with an increase of 8.6%, and non-metallic mineral products, basic metal and fabricated metal products which rose by 11.1%. “On a month-on-month (MoM) basis, the sales value grew by 0.8% from RM154.9 billion in May 2024,” he said. Additionally, the sales value for export-oriented industries, which accounted for 73.1% continued to expand at a faster pace of 6% in June 2024 (May 2024: 4.6%) while domestic-oriented industries grew a modest 5.5% (May 2024: 7.9%) due to 5.2% decline in motor vehicles, trailers and semi-trailers sales. “There were 2.37 million employees in the manufacturing sector in June 2024, a 1% increase compared to 0.9% in May 2024,” Mohd Uzir said, adding that salaries and wages rose by 1.8% to a total of RM8.20 billion in June 2024.

KUALA LUMPUR: The care economy is flourishing in Southeast Asia, with Malaysia’s market potential reaching US$25.5 billion. According to Deputy Economy Minister, Datuk Hanifah Hajar Taib, the country’s ageing population has presented an optimistic economic opportunity. “The global market potential from the ageing population is projected to be US$4.56 trillion by 2025. “Malaysia can leverage this trend to enhance societal well-being and productivity through new economic sectors such as the caregiver economy,” he said. Hanifah also noted that Malaysia’s industries could benefit from the growing demand for healthcare services, both domestically and internationally. This includes opportunities in healthcare and long-term care tourism, medical equipment supplies and advanced medical technologies employing artificial intelligence (AI) and robotics. Additionally, Hanifah encouraged private companies to develop products and solutions targeting the elderly and the caregiver economy. — BERNAMA

KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) will implement preventive measures to address potential supply chain disruptions, including the development of a platform to enhance traceability, ensuring the resilience of Malaysia’s industrial supply chain. MITI also plans to establish initiatives that provide centralised access to guidelines, funding opportunities and support programmes while fostering knowledge sharing among industry players. These measures were decided at the Sixth National Investment Council (MPN) Meeting that focused on ‘Building Economic Security Through a Resilient Supply Chain’. Its minister, Tengku Datuk Seri Zafrul Abdul Aziz emphasised the need for responsive strategies to manage and recover from supply chain disruptions, citing findings from its engagement sessions with industry stakeholders and bilateral and multilateral cooperation. He said the global supply chain is the lifeline of the world economy with interconnected systems that complement one another. “Supply chain security ensures the smooth flow of goods, services and inputs across borders and fosters economic growth and universal prosperity. “The COVID-19 pandemic served as a wake-up call, exposing vulnerabilities and underscoring the importance of a resilient and efficient industrial supply chain,” he said. As an open economy, Malaysia is particularly sensitive to supply chain disruptions caused by global geopolitical events and natural disasters, MITI noted. “To maintain the competitiveness of the Malaysian economy, MITI is committed to ensuring that the national industrial supply chain remains resilient and secure against future disruptions,” the minister added. The ministry stressed the importance of a multi-pronged approach to bolster global supply chain resilience. “Collaboration between governments, businesses, and international organisations is crucial for facilitating information sharing, coordinating responses, and developing uniform standards. “This includes leveraging technology, diversifying sourcing options, fostering regional cooperation, and enhancing flexibility as key strategies to strengthen supply chains against disruptions,” MITl said. MITI also highlighted the need for digitisation to reinforce supply chain resilience and security, drive innovation, and provide a competitive edge in the increasingly complex global market. “By embracing digital technology, Malaysia can improve its ability to prevent and respond to disruptions, implement robust security measures, and streamline operations for greater efficiency and agility through digitisation, including systems, applications, and virtual centres of excellence,” the ministry explained. — BERNAMA

KUALA LUMPUR: A strong Malaysia-China economic relationship is expected to help the country face and overcome the adverse effects of a US recession. Capital Dynamics Asset Management Sdn Bhd Managing Director, Tan Teng Boo said that China is set to introduce aggressive policies to shore up its economy on the back of the latest development in the country and the US, helping to cushion the impacts of a possible global recession. Therefore, he believed Malaysia’s economy would still grow relatively better than other countries due to its links with China. Tan opined that Bursa Malaysia’s FBM KLCI would be able to end the year at the 1,600 level and the ringgit between 4.40 and 4.50 as US recession risks are set to induce monetary policy change in the world’s largest economy. “China has always been an important country to the world and Malaysia, not just for businesses and investments but also for the nation’s economy and foreign policies,” he said. Tan described the US recession as potentially unprecedented and very much different from previous crises, with the US government having limited policy space and may cut its interest rates significantly starting this year. “I will not be surprised if the US cuts interest rates to near zero again, he highlighted. Tan said that with a 2024 budget deficit estimated at 7% of GDP, the US has limited means to launch fiscal stimulus to boost its economy. He opined that Bank Negara Malaysia may retain its overnight policy rate at the current 3% to ensure that the monetary policy stance remains conducive to sustainable economic growth, amid a narrow rate differential should the US start cutting interest rates this year. According to Tan, China is in an excellent position to make use of fiscal measures to support the economy, and it has plenty of room to loosen its monetary policy. He added that with the decoupling already ongoing with the US, the resilient Chinese economy will be able to safely sail through another US-led financial crisis, just like 2008-2009. Tan said China saved the global economy in 2009 with her massive fiscal stimulus and again in 2022 to 2023 from a cost of living crisis, by not taking a fiscal-bazooka stimulus. “This time, we may see China saving the global economy for the third time, he said. China has been Malaysia’s largest trading partner since 2009, making up 14% of exports. Tourist arrivals from China reached nearly 1.2 million Chinese in five months of 2024, a 200% increase over the same period of last year. — BERNAMA