KUALA LUMPUR, Sept 3 ― Malaysian manufacturers are confident that the slow economy will resurge soon despite a dip in their purchasing index this month, according to the latest data by market research outfit IHS Markit.
IHS Markit chief business economist Chris Williamson said its survey of 400 Malaysian companies show an increase in hiring as employers expect domestic and foreign demand to rise in the near future even though the Malaysia Manufacturing Purchasing Managers Index (PMI) recorded a drop in August at 47.4 points compared to 47.6 points last month.
“Encouragingly, Malaysia’s manufacturers have become increasingly optimistic that the tide will soon turn and that demand will strengthen again in coming months.
“Optimism for the year ahead is now at its highest since late-2013, and it’s especially good to see firms taking on more staff to meet the improved outlook and reporting new product launches to help drive revenues,” he said in a statement accompanying the report.
He attributed the lower PMI reading in part to the effect on the Malaysian manufacturing segment from global trade tensions.
IHS Markit’s PMI analysis indicates that the manufacturing sector remains on course with the projected GDP growth of 4.5 per cent for this year.
“In line with expectations of greater sales, firms enhanced operating capacities by expanding employment, reporting the first rise in staffing levels for three months.
“Furthermore, the rate of job creation was on par with its historical average,” the research firm said.
