KUALA LUMPUR, April 1 — The manufacturing sector’s contraction has continued into March albeit at a rate less severe than the previous month, according to a Nikkei Malaysia index.

Data showed that while production did not worsen much from the three-month low registered in February, new orders have now fallen for 13 consecutive months.

“A number of panellists mentioned challenging market conditions and increased competition as factors behind the fall in new work.

“That said, the rate of decline eased to the weakest in ten months. Data suggested that an increase in international demand helped to soften the overall fall in total new work intakes, as new export orders rose for the second month running,” the report said.

It added that conditions were exacerbated by effects of the Goods and Services Tax (GST) introduced a year ago today and the ringgit’s continued weak exchange rate, although the Malaysian currency has since staged a recovery and is now at 3.90 against the US dollar.

The manufacturing sector’s continued volatility adds further pressure on Malaysia that is targeting to expand its economy by up to 4.5 per cent this year, amid worsening consumer sentiment hurt by high household debt, rising inflation, and a deteriorating job market.