Manufacturing Sales Value Rises 7.7% to RM163.9bil in August

The manufacturing sector's August 2024 sales value reached RM163.9 billion, reflecting a year-on-year (y-o-y) increase of 7.7 per cent versus a decline of 3.3 per cent in the same month last year, according to the Department of Statistics Department (DOSM).

However, the sector's sales value moderated compared to the 9.1 per cent growth observed in the preceding month.

Chief statistician Datuk Seri Mohd Uzir Mahidin attributed the increase primarily to the double-digit growth in the food, beverages, and tobacco sub-sector at 16.1 per cent (July 2024: 16 per cent) and in electrical and electronics products at 10.4 per cent (July 2024: 8.2 per cent).

"On a month-to-month basis, the sales value grew by 4.4 per cent, following a 0.6 per cent rise in July 2024 when sales value amounted to RM157.1 billion,” he said in the August Monthly Manufacturing Statistics report released today.

Mohd Uzir also highlighted that export-oriented industries, which accounted for 72.7 per cent of the total sales value, grew by 7.8 per cent in August 2024, a modest rise from 9.4 per cent recorded in the previous month. The performance was driven by increases in the manufacture of computer, electronics, and optical products (12.0 per cent), vegetable and animal oils and fats (23.3 per cent), and rubber products (11.6 per cent).

For a month-on-month comparison, the sales value of the export-oriented industries recovered to five per cent from a marginal decline of 0.5 per cent in July 2024.

Similarly, he said domestic-oriented industries expanded by 7.6 per cent in August (July 2024: 8.4 per cent), mainly due to growth in the manufacture of motor vehicles, trailers, and semi-trailers (10.4 per cent), food processing products (7.5 per cent), and fabricated metal products, except machinery and equipment (9.7 per cent).

For comparison monthly, the sales value of domestic-oriented industries remained on the rise by recording a growth of 2.7 per cent (July 2024: 3.7 per cent)

Mohd Uzir also noted the total number of employees in the manufacturing sector increased by one per cent to 2.38 million (July 2024: 1.3 per cent), compared to a year ago. "The growth was predominantly attributed to food, beverages and tobacco sub-sector (3.9 per cent); wood, furniture, paper products and printing (1.1 per cent); and textiles, wearing apparel, leather, and footwear (1.5 per cent)," he said.

Compared with the preceding month, the number of employees improved by 0.4 per cent after a slight drop of 0.01 per cent in July 2024. In line with the increase in the number of employees, the salaries and wages paid in the manufacturing sector rose by 1.5 per cent, reaching a total of RM8.12 billion.

"This led to an average monthly salary and wage increase of 0.6 per cent per employee amounting to RM3,417 in August 2024 (July 2024: 1.2 per cent; RM3,429). The sales value per employee rose by 6.7 per cent to record RM66,950 (July 2024: 7.8 per cent; RM66,285)," he added.

For the first eight months of this year, the manufacturing sector's cumulative sales value reached RM1.24 trillion, an increase of 4.9 per cent compared to the same period in 2023 (January-August 2023: RM1.18 trillion; 1.7 per cent).