Malaysian manufacturing sector sales value slips in November

PETALING JAYA: The sales value of the manufacturing sector slipped by 2.6% year-on-year to RM155 billion in November 2023, according to the Department of Statistics Malaysia (DoSM).

Chief Statistician Malaysia Datuk Sri Dr. Mohd Uzir Mahidin said, “The sales value of the manufacturing sector slipped further by 2.6% in November 2023 from the 1.4% decline registered in the preceding month. The decrease was primarily due to the substantial drop in the petroleum, chemical, rubber & plastic products sub-sector by 10.8% (October 2023: -9.5%); and the electrical & electronics products sub-sector which fell by 5.3% (October 2023: -2.7%).”

As compared to the preceding month, he added the sales value descended by 1.1% as against RM156.7 billion recorded in October 2023 (-0.7%).

The sales value of export-oriented industries which accounted for more than two-thirds of total sales, posted a wider decline by 6.9% in November 2023 as compared to the negative 5.2% registered in October 2023. The decline was predominantly attributable to the decrease in the manufacture of coke & refined petroleum products at negative 10.0%, followed by the manufacture of computer, electronics & optical products (-6.6%); and Manufacture of vegetable & animal oils & fats (-3.8%).

Nonetheless, the domestic-oriented industries sustained the positive momentum by recording 8.8% in November 2023 (October 2023: 9.7%). The expansion was fueled primarily by the strong growth in the manufacture of food products by 11.4%; manufacture of motor vehicles, trailers & semi-trailers (11.3%); and manufacture of fabricated metal products, except machinery & equipment (11.3%).

On a month-on-month comparison, export-oriented industries dropped by 3.6% while domestic-oriented industries expanded by 5.3%.

Commenting on the number of employees, Mohd Uzir said, “The manufacturing sector engaged 2.38 million persons in November 2023, an increase of 2.1% as compared to the 2.33 million persons registered in November 2022. The increment was mainly attributable to the rise in the number of employees in the food, beverages & tobacco (6.9%); non-metallic mineral products, basic metal & fabricated metal products (2.3%); and electrical & electronic products (0.7%) sub-sectors. On a month-on-month basis, the number of employees in the manufacturing sector declined slightly by 0.04%.”

In tandem with the addition in the number of employees, the salaries & wages paid in the Manufacturing sector rose by 3.3% year-on-year, totalling RM8.1 billion in November 2023. On a month-on-month comparison, the salaries & wages paid posted a marginal growth of 0.04% as against 0.1% registered in October 2023.

Furthermore, the sales value per employee decreased by 4.7% to record RM65,193 while the average salaries & wages per employee in November 2023 was RM3,428 which rose by 1.1% year-on-year.

Summarising the performance for the first 11 months of 2023, Mohd Uzir commented, “The sales value of the manufacturing sector attained

RM1.65 trillion, grew marginally by 0.6% as compared to the same period in the preceding year (January – November 2022: 16.6%). During this period, the number of employees added by 2.1%, to record a total of 2.38 million persons while salaries & wages advanced by 3.6%, amounting to RM89.0 billion. Meanwhile, the sales value per employee declined by 1.8%, amounting to RM701,986.”