KUALA LUMPUR (XINHUA) – Research houses in Malaysia yesterday anticipated the country’s manufacturing activity to improve in the near term after S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose to a seven-month high of 47.9 in November.
Kenanga Research said in a note yesterday that the slowdown in Malaysia’s manufacturing activity may reach its bottom and is expected to gradually improve in the near term.
According to the research house, the recent uptick in Malaysia’s manufacturing PMI suggests a possible resurgence in the health of the manufacturing sector as the year draws to a close, with the positive momentum extending into 2024.
This is partly attributed to the potential upswing in the technology sector and China’s gradual recovery, both of which are expected to contribute to an improvement in Malaysia’s export performance moving forward, it said.
Consequently, it forecast that Malaysia’s gross domestic product growth will continue to expand in the final quarter this year, reaching 3.7 per cent, primarily driven by a resilient domestic demand, bolstered by year-end festive spending and a rise in tourist arrivals.
Additionally, it said the growth will also be supported by increased fiscal spending, as the government typically ramps up spending towards the year’s end.
