Published June 19, 2009

Manufacturing sales slide 26.2% in April

Iron & steel industry hardest hit, with fall of 52%

By PAULINE NG
IN KUALA LUMPUR

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MALAYSIA'S manufacturing sales saw no respite in April, declining 26.2 per cent year-on-year to RM35.9 billion (S$14.8 billion) as the sharp global recession continued to sap demand. The country's major industries all recorded weak output.

Compared to the month before, the sales value also saw a decrease of 1.6 per cent or RM587 million.

Economists expect the sales output for the next two months to continue to be 'quite severe' but not as steep as in the first quarter.

RAM Holdings chief economist Yeah Kim Leng said the lower sales in April reflect the sharp contraction in exports and the slowdown in domestic demand, with the quantum of decline in line with the output contraction in other markets. 'But we should see a gradual turnaround in the third quarter.'

Sales of iron and steel products recorded the biggest fall of nearly 52 per cent to RM1.35 billion in April, while computer and computer peripherals slumped 48 per cent to RM2.87 billion. Sales of petroleum products, printed circuit boards, and other basic industrial chemicals were also lower by 30-plus per cent.

For the first four months to April, the total sales value of the manufacturing sector sank by 26 per cent or RM49 billion to RM140.4 billion. Salaries and wages were 9 per cent or RM738 million less to RM8.22 billion.

The number of employees employed during the period was 7.7 per cent less or 78,353 fewer to 944,058 people. Productivity in ringgit terms declined by a fifth or nearly 37,000 to RM148,728.

Despite launching a RM67 billion stimulus package, Malaysian authorities expect the economy to contract by 4 to 5 per cent this year.

As with most export-reliant nations, the country has not been spared the near collapse in global demand, and in April saw a larger-than-projected fall in exports of about 26 per cent.