KUALA LUMPUR (Feb 7): The sales value of the manufacturing sector declined by 4.2% year-on-year (y-o-y) to RM149.9 billion in December 2023, marking the largest decline since May 2020, according to the Department of Statistics Malaysia (DOSM).
Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the decrease was primarily influenced by the continuous decline in the petroleum, chemical, rubber and plastic products sub-sector since June 2023, registering a negative 13.6% in December 2023.
Moreover, the electrical and electronics products sub-sector dropped by 4.6%, while the food, beverages and tobacco sub-sector slipped by 2.6%.
"As compared to the preceding month, the sales value shrank by 3.3% compared to RM155 billion recorded in November 2023," he said in a statement on Wednesday.
Mohd Uzir said the sales value of export-oriented industries, which accounted for nearly 70% of total sales, further declined by 8.4% in December 2023 after shrinking by 6.9% in November 2023, mainly due to the drop in the manufacture of coke and refined petroleum products at negative 24.9%, followed by the manufacture of vegetable and animal oils and fats (-8.6%), and the manufacture of computer, electronics and optical products (-4.8%).
Nevertheless, he said the domestic-oriented industries remained upbeat by recording a positive growth of 6.7% in December 2023, underpinned by the sturdy expansion in the manufacture of fabricated metal products, except machinery and equipment at 11.5%. The manufacture of motor vehicles, trailers and semi-trailers experienced a growth of 8%, while the manufacture of food processing products increased by 6.8%.
On a month-on-month basis, Mohd Uzir said export-oriented industries dropped by 3.9%, while domestic-oriented industries expanded by 1.8%.
Manufacturing sector engaged persons increased by 1.7% y-o-y
Meanwhile, Mohd Uzir said the manufacturing sector engaged 2.37 million persons in December 2023, an increase of 1.7% compared to the 2.34 million persons registered in December 2022.
The increment was largely contributed by the food, beverages and tobacco (5.9%); non-metallic mineral products, basic metal and fabricated metal products (2.3%); and wood, furniture, paper products and printing sub-sectors (2.2%).
"As compared to the preceding month, the number of employees in this sector declined marginally by 0.1%," he said.
In tandem with the addition of the number of employees, Mohd Uzir said salaries and wages paid in the manufacturing sector also posted an increase of 2.1% y-o-y, amounting to RM8.7 billion, in December 2023.
As compared to November 2023, the salaries and wages paid grew by 7.3%, as against the slight growth of 0.04% registered in the preceding month.
Furthermore, sales value per employee decreased by 5.8% to record RM63,121, while average salaries and wages per employee in December 2023 stood at RM3,683, which rose by 0.5% y-o-y.
In the fourth quarter of 2023, Mohd Uzir said the sales value of the manufacturing sector continued to decelerate for three consecutive quarters, declining by 2.7% y-o-y to reach RM461.5 billion. The decrease was attributed to the petroleum, chemical, rubber and plastics products (-11.2%); and electrical and electronics products sub-sectors (-4.2%).
During this quarter, the number of employees slowed down to 1.7%, while salaries and wages paid also slowed down to 2.9%.
Overall performance in 2023
On the overall performance for the year 2023, Mohd Uzir said the sales value of the manufacturing sector increased marginally by 0.2% y-o-y, reaching RM1.8 trillion.
In 2023, the number of employees increased by 1.7% to record a total of 2.37 million persons, while salaries and wages rose by 3.5% to RM97.8 billion. Moreover, sales value per employee registered a decline of 1.5%, amounting to RM759,735.