The Malaysian manufacturing sector is projected to achieve strong growth in the second half of 2024 (2H2024), driven by supportive domestic policies and strong global demand, according to the Federation of Malaysian Manufacturers (FMM). Increased business activity and production volumes has indicated a positive outlook for the sector.

Despite concerns on global uncertainties and demand from international markets, the demand for Malaysian-made goods has risen significantly, as reflected in increased export rates over the past months, said FMM president Tan Sri Datuk Soh Thian Lai at the release of the 25th edition of its Business Conditions Index survey.

Malaysia’s manufacturing sector grew by 1.9% year-on-year in the first quarter of 2024 (1Q2024), and further increased to 4.7% in the second quarter (2Q2024). Given this strong performance, further growth in exports is anticipated in the second half of 2024. It was also reported in the survey that 26% of respondents expect higher sales abroad in the second half of 2024, driven by the recovery in the global market and Malaysia’s strategic trade agreements.

Malaysia’s total trade increased by nearly 10%, reaching approximately RM1.652 trillion in the first seven months of 2024. Of this total, manufactured goods for export accounted for around RM735 billion, representing 85.5% of total exports.

Building on the positive performance in the manufacturing sector, Malaysian food and beverage manufacturers are driving export growth through their participation in local and international trade exhibitions. For instance, Fine Food Australia is a significant event for Malaysian exporters seeking to expand their business to Australia. Malaysia Business Group members, Vermi Industries Sdn Bhd and RPO Logic Sdn Bhd will be participating in the event from 3 to 5 September 2024.

Another leading event is the Malaysian International Halal Showcase (MIHAS), scheduled from 17 to 20 September at the Malaysia International Trade and Exhibition Centre. MIHAS plays a crucial role in boosting trade, offering numerous export opportunities for businesses and facilitating meetings between international buyers and Malaysia food and beverage companies. A total of thirty-four companies from the Malaysia Business Group will be participating in the event.

References
The Edge Malaysia (3 September 2024). Malaysian manufacturers foresee strong exports to continue in 2H24. https://ceomorningbrief.theedgemalaysia.com/2024/0823/