The sales value of the Manufacturing sector declined further to 3.3 per cent in August 2023 after recording negative growth of 3.0 per cent in the preceding month.
The Department of Statistics Malaysia (DOSM), in its Monthly Manufacturing Statistics, August 2023 release today (Oct 12), said the year-on-year downturn was primarily influenced by the Petroleum chemical, rubber & plastic sub-sector, which decreased by 12.1 per cent, marking three consecutive months of double-digit declines.
In addition, the deterioration was also attributable to the contraction of Food, beverages & tobacco (-6.6%); and Wood, furniture, paper products & printing (-0.1%) sub-sectors. On a month-on-month comparison, the sales value rebounded to 5.8 per cent as compared to the negative 2.4 per cent recorded in July 2023.
The sales value of export-oriented industries which accounted for 72.7 per cent of total sales decreased by 6.7 per cent in August 2023 (July 2023: -7.0%).
On the other hand, domestic-oriented industries continued to mitigate the decline in sales value, with a growth of 7.2 per cent in August 2023 (July 2023: 9.1%).
On month-on-month basis, export-oriented and domestic industries increased by 6.7 per cent and 3.5 per cent respectively.
The Manufacturing sector engaged 2.36 million persons in August 2023, posted a 2.0 per cent increase as compared to the 2.31 million persons recorded a year ago.
The addition was largely in the Food, beverages and tobacco (6.2%); Wood, furniture, paper products & printing (2.6%); and Non-metallic mineral products, basic metal & fabricated metal (2.2%) sub-sectors.
As compared to the preceding month, the number of employees in this sector increased marginally by 0.6 per cent, DOSM added.
In line with the increase in employment, the salaries & wages paid in the Manufacturing sector grew by 3.0 per cent year-on-year, amounting to RM8.0 billion in August 2023.
On a month-on-month comparison, the salaries & wages increased by 0.9 per cent from RM7.9 billion recorded in July 2023. In addition, the average salaries & wages per employee went up by 1.0 per cent with a value of RM3,397 while the sales value per employee dropped by 5.2 per cent to RM64,660.
Summarising the performance for the first eight months of 2023, the sales value of the Manufacturing sector attained RM1,184.8 billion, rose by 1.7 per cent as compared to the same period in the preceding year.
During this period, the number of employees increased by 2.0 per cent to record a total of 2.36 million persons while salaries & wages grew by 3.7 per cent, registering RM64.6 billion. Meanwhile, the sales value per employee declined slightly by 0.2 per cent, amounting to RM503,093.