Malaysia’s Exports Of Goods To Rebound And Expand By +5.2% In 2024: MIDF

MIDF Research expects a steady expansion of palm oil and mining exports amid stable global commodity prices.

This was based on the seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI) which rose to 50.2 in May 2024 from 49.0 in April 2024, signalling a renewed improvement in manufacturing sector conditions following 20 months of moderation. 

Malaysia’s S&P Global Manufacturing PMI rose to 50.2 in May-24, the first expansion since Aug-22. Output increased for the first time since Jul-22 as new orders rebounded to end 20-consecutive months of decline.

Exports orders also surged to the highest in over 3-year.

Additional workload saw manufacturers increasing their workforce.

In terms of prices, both input and output inflation increased but on par compared to their respective series average.

Manufacturers remained sanguine on the sector’s outlook, albeit the level of confidence dropped to 9-month low. The return of optimism among Malaysia’s manufacturers signalled for a better external trade performance and industrial activities moving forward particularly 2HCY24.

MIDF believes outbound shipments of manufactured goods including E&E, refine petroleum, chemicals and machinery & equipment to expand faster in 2HCY24. On that note, MIDF reiterated their expectation for exports of goods to rebound and expand by +5.2% in 2024 (2023: -8.0%).

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