MALAYSIA'S MANUFACTURING INDUSTRY SEES LOWER CAPACITY UTILISATION IN 2Q 2023 - DOSM

Manufacturing industry operated at a lower capacity utilisation of 78.2% in the second quarter of 2023 (2Q 2023) versus 79.0% in the same period last year, said the Department of Statistics Malaysia (DoSM).

In a statement, chief statistician Datuk Seri Mohd Uzir Mahidin said the decline was due to the decreases recorded in almost all sub-sectors, except for the manufacture of other non-metallic mineral products, as well as basic metals and fabricated metal products.  

Nonetheless, he said six states' manufacturing capacity utilisation had surpassed the national rate of 78.2% in 2Q 2023.

They are Terengganu (86.4%), Selangor (82.0%), Melaka (81.8%), Johor (78.7%), Kedah (78.6%) and Negeri Sembilan (78.3%), while other states recorded lower capacity rates than the national average, with Perlis continuing to record the lowest at 62.3%.

On a quarterly basis, Mohd Uzir said the capacity utilisation of the manufacturing industry in 2Q 2023 contracted 1.6 percentage points, contributed by several factors, particularly low demand, insufficient supply of materials, repair and maintenance of machinery and equipment.

"The downturn in 2Q 2023 was reflected by the production of manufacturing output, indicated by the marginal growth of 0.1% in the industrial production index compared to 3.4% in 1Q 2023," he added.