The seasonally adjusted S&P Global Malaysia Manufacturing PMI posted 49.9 in June, broadly in line with the neutral 50.0 mark, news reports carried yesterday.
Malaysia’s S&P Global Manufacturing PMI descended marginally to 49.9 in Jun-24 (May-24: 50.2).
MIDF Research remains optimistic on Malaysia’s external trade performance in 2HCY24 among others due to better oversea sales of manufactured goods, including E&E, refined petroleum, chemicals, and machinery & equipment.
Additionally, MIDF Research foresees a steady expansion in palm oil and mining exports, supported by encouraging global commodity prices.
Consequently, MIDF Research reaffirms their expectation for goods exports to rebound and grow by +5.2% in 2024 (2023: -8.0%, 5MCY24: +4.5%).
MIDF Research, in a note today said, new orders rose for the 2-straight months, albeit at a softer pace. Export sales on improving trends for 3-consecutive months, bolstered by increased orders from Asia Pacific.
Manufacturers pared production volume slightly following May-24 rise but kept the hiring level steady.
In terms of price, cost inflation was stable, but input inflation accelerated possibly due to the diesel-subsidy rationalisation effects.
Manufacturers remained optimistic about the sector outlook, with order growth projected to be sustained.
Despite the slight deterioration, PMI releases of other regional economies continued to point towards better regional trade conditions, China (51.8), Indonesia (50.7), Philippines (51.3), Taiwan (53.2), and Vietnam (54.7).
