Manufacturing sector set to recover in H2 2024
Published on: Thursday, February 08, 2024
By: Bernama
The recovery of the manufacturing sector will be driven by the technology upcycle in the second half of 2024 and China’s post-pandemic recovery, says Kenanga IB. (Freepik pic)
PETALING JAYA: Malaysia’s manufacturing sector is expected to see a robust recovery in the second half of 2024 (H2 2024), and the manufacturing index is forecasted to expand 4.6% this year, said Kenanga Investment Bank Bhd (Kenanga IB).
In a statement, it said the manufacturing sector’s recovery will be driven by the technology upcycle in H2 2024 and China’s gradual post-pandemic recovery.
ADVERTISEMENT
“The bank also expects the gross domestic product (GDP) growth to expand further to 4.9% this year.
“We maintain our GDP growth projection for the fourth quarter (Q4) of 2023 at 3.7% compared to 3.4% advance estimates by the statistics department,” it stated.
Meanwhile, on a separate note, Public Investment Bank Bhd (PIVB) has anticipated improved growth prospects for the industrial sector in 2024.
The investment bank said in 2023, the manufacturing and mining sectors demonstrated modest expansions of 0.7% and 0.8%, respectively, while the electricity sector experienced a growth rate of 2.5%.
ADVERTISEMENT
“The manufacturing sector declined to -1.4% year-on-year in December compared to -0.1% in November.
“Meanwhile, the electricity sector grew by 4.6% in December compared to 4.3% in November,” PIVB said.
ADVERTISEMENT
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
