Malaysia's manufacturing sales rise by 7.7% in August

The food, beverages, and tobacco sectors lead the growth.

Malaysia's manufacturing sales increased by 7.7% year-on-year to $34.42b (RM163.9b) in August, according to the Department of Statistics Malaysia (DOSM) on October 11.

DOSM highlighted that this growth was primarily driven by strong performance in the food, beverages, and tobacco sectors (16.1%) and the electrical and electronics (E&E) products sector (10.4%).

Export-oriented industries, accounting for 72.7% of total sales, grew by 7.8% in August 2024, down from the 9.4% growth in July 2024. The surge was mainly due to notable increases in the manufacture of computers, electronics, and optical products (12.0%); vegetable and animal oils and fats (22.3%); and rubber products (11.6%). Month-on-month, export-oriented sales rebounded by 5% after a slight 0.5% dip in July 2024.

Domestic-oriented industries expanded by 7.6%, led by motor vehicles, trailers, and semi-trailers manufacturing (10.4%), followed by food processing (7.5%) and fabricated metal products (9.7%). Month-on-month, domestic sales grew by 2.7% (compared to 3.7% in July 2024).

In August 2024, the manufacturing sector employed 2.38 million people, a 1.0% increase from the previous year. Growth was driven by the food, beverages, and tobacco sectors (3.9%); wood furniture, paper products, and printing (1.1%); and textiles, apparel, leather, and footwear (1.5%). Month-on-month, employment increased by 0.4%, after a slight 0.01% drop in July 2024.

Salaries and wages in the manufacturing sector rose by 1.5% to $1.71b (RM8.12b), with an average monthly salary of $717.57 (RM3,417), up 0.6% year-on-year, compared to $720.09 (RM3,429) in July 2024. Additionally, sales per employee rose by 6.7% to $1.71b (RM8.12b), from $13,919.85 (RM66,285) in July 2024.

From January to August 2024, cumulative manufacturing sales reached $260.95b (RM1,242.6b), a 4.9% increase compared to the same period in 2023 (RM1,184.7 billion, a 1.7% increase). The total number of employees grew by 1.0% to 2.38 million, and total wages increased by 1.5% to $13.78b (RM65.6b), resulting in a 3.9% growth in sales per employee, reaching $109,740.33 (RM522,573).