Selangor Journal
Image for illustration purposes only. — Picture via PEXELS

Malaysia’s manufacturing industry sees lower capacity utilisation in Q2 2023 — DoSM

KUALA LUMPUR, Aug 30 — The local manufacturing industry operated at a lower capacity utilisation of 78.2 per cent in the second quarter of 2023 (2Q 2023) versus 79.0 per cent in the same period last year, said the Department of Statistics Malaysia (DoSM).

In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said the decline was due to the decreases recorded in almost all sub-sectors, except for the manufacture of other non-metallic mineral products, as well as basic metals and fabricated metal products.

Nonetheless, he said six states’ manufacturing capacity utilisation had surpassed the national rate of 78.2 per cent in the second quarter 2023.

They are Terengganu with a utilisation rate of 86.4 per cent, Selangor at 82.0 per cent, Melaka at 81.8 per cent, Johor at 78.7 per cent, Kedah at 78.6 per cent and Negeri Sembilan which recorded a utilisation rate of 78.3 per cent, while other states recorded lower capacity rates than the national average, with Perlis continuing to record the lowest at 62.3 per cent.

On a quarterly basis, Mohd Uzir said the capacity utilisation of the manufacturing industry in the second quarter of 2023 contracted 1.6 percentage points, contributed by several factors, particularly low demand, insufficient supply of materials, repair and maintenance of machinery and equipment.

“The downturn in the second quarter of 2023 was reflected by the production of manufacturing output, indicated by the marginal growth of 0.1 per cent in the industrial production index compared to 3.4 per cent in the first quarter of 2023.”

— Bernama

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