Although the highest purchasing managers’ index (PMI) for the last four months was higher than August’s 47.4, the business conditions of Malaysia’s manufacturing industry in September remained challenging. Read more article about “Malaysia GDP growth to slow to 4.3% in 2020” by MARC
IHS Markit said in a statement today that, based on historical comparisons, at current levels, the PMI roughly indicates an annual gross domestic product (GDP) growth of between 4.5% and 5%.
“The survey’s output index rose slightly in September but was close to the level of the third quarter, indicating a stable production trend.
It said: “Analysis of official historical data on comparable manufacturing in Malaysia shows that at current levels, the survey’s output index is consistent with annual output growth of just over 4%.”
The global information provider noted that the expert group commented on the development of new products and the resilience of customer demand as key reasons to support production, and in some cases, because the company has prepared for customer demand for these products in advance Ready, so new products are still in stock in some cases.
At the same time, demand conditions also show signs of stabilizing in September.
Survey data indicate that the environment has become increasingly severe in recent months, but it is reported that the increase in sales of existing customers has led to an increase in the index of new orders.
However, as customers demand price discounts under strong competitive pressures, the challenges remain obvious.
External demand is also fragile, with orders in major export markets decreasing.
At the same time, current and future workloads are considered enough to maintain employment stability in September.
The future output index is consistent with a relatively strong level of confidence, highlighting that companies expect output to be higher than current levels in the next 12 months.
According to the company, the forecast of increased demand from domestic and foreign customers and the planned development of new products have brought positive prospects.