MIDF OPTIMISTIC EXPORTS OF GOOD TO REBOUND BY 5.2% IN 2024

The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers' index (PMI) rose to 49.0 in April from 48.4 in March, indicating a softer downturn in the country's manufacturing sector.

MIDF noted that this is an improvement from the 3-month low recorded in the previous month. Demand conditions remained muted, as new businesses moderated for the 20-straight months. However, foreign demand improved to the strongest level since Apr-21. Manufacturers tapered production for 21-consecutive months although the pace slowed from Mar-24. Employment levels steadied while input price inflation remained stable, contributing to a marginal rise in output prices after staying flat in Mar-24.

Confidence among manufacturers waned, reaching to 8-month low amid uncertainty over speed of demand recovery. Looking ahead, MIDF foresees better pick-up of global trade activities as regional economies recorded improving manufacturing PMI figures. For instance, China registered 51.4 (Mar-24: 51.1), Philippines 52.2 (Mar-24: 50.9), Vietnam 50.3 (Mar-24: 49.9) and Japan 49.6 (Mar-24: 48.2). The house keeps its forecast for Malaysia's exports of goods to rebound by +5.2% in 2024 (2023: -8.0%).