PUTRAJAYA, Nov 2 — The manufacturing sector is expected to expand 4.7 per cent in 2019 supported by export-oriented industries following continuous expansion in the electrical and electronics (E&E), as well as the chemicals and chemical product sub-sectors.

The Ministry of Finance said growth in E&E output would continue to surge, driven by the increasing use of wearable gadgets and smart-home applications.

"This is in line with the convergence towards digital technology and electronic integrated circuit design innovation in embracing the Fourth Industrial Revolution (IR 4.0),” it said in the "Economic Outlook 2018” report presented in Parliament today.

The production of petrochemicals and oleochemicals in the chemicals sector was expected to benefit from the abundance of feedstock in the form of oil and gas, as well as, palm oil coupled with sustained demand from China, Indonesia and Thailand.

"Domestic-oriented industries are expected to be driven by the robust growth of the food sub-sector following strong household demand while the construction-related sub-sector will be supported by continuous expansion in construction activities,” the report said.

Meanwhile, the manufacturing sector grew 5.1 per cent, year-on-year (y-o-y), during the first half of 2018 and for the year, the sector is expected to grow 4.9 per cent largely driven by export-oriented industries.

The report said this would be in line with the increase in the manufacturing production index which grew 4.9 per cent, y-o-y, and sales at 7.3 per cent, y-o-y, during the first eight months of 2018.

"Continuous expansion in the electronics cycle and favourable global industrial activities are expected to translate into firm demand for Malaysian manufactured exports.

"Hence, the strong growth in the production of export-oriented manufactured goods such E&E, petroleum, chemical, rubber and plastic products,” the report said, adding that domestic-oriented industries were forecast to remain steady supported by sustained demand for consumer and construction-related products. — Bernama