Slower production in manufacturing sector likely to persist, says Ambank Research

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Slower production in manufacturing sector likely to persist, says Ambank Research
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Factors contributing to the slowdown include subdued production, limited new orders and decline in new export orders.

Malaysia’s industrial production index contracted by 0.3% in August 2023 with the manufacturing sector down by 0.6%, mining increased 0.1% and electricity production up by 1.9%, says Ambank Research.

In a research note, it said factors contributing to this include subdued production, limited new orders, and a decline in new export orders, though at a slower pace. Against this backdrop, AmBank Research reiterated its gross domestic product forecast of 4% for 2023 and expects the economy to grow by 4.5% in 2024.Malaysia’s industrial production index declined by 0.3% in August from a growth of 0.7% in July 2023.

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