Malaysia's merchandise exports are expected to recover and grow at 5.2% year-on-year compared to a contraction of 8.0% in 2023. It follows a resurgence in global trade and production activities.
Based on MIDF's statement, MIDF Amanah Investment Bank Bhd's proposed research mentions that optimistic sentiment among producers has also been shown to increase slightly from December 2023 and local producers expect demand to continue to recover.
The report was prompted by S&P Global data on Thursday which said overall confidence among manufacturers in Malaysia had increased slightly in January 2024 compared to December last year amid better demand indicators.
Purchasing Managers' Index (PMI) data adjusted by S&P Global Malaysia recorded 49.0 in January, up from 47.9 in December. It was the highest record since September 2022.
Figures now show that the momentum of last year's contraction is fading and put Malaysia's manufacturing sector on an upward track to record a gradual recovery.
Meanwhile, the US ISM Manufacturing PMI rose to 49.1 in January 2024 from 47.1 in December 2023 with a new upward outlook.
In China, MIDF Research said although the Caixin Manufacturing PMI remained at 50.8 in January 2024. Manufacturing activity remained on track for the third consecutive month of growth.
At the same time, regional countries such as Indonesia, Thailand, Vietnam, Taiwan and South Korea also reported higher PMI readings last month.
