30-8-2023 (KUALA LUMPUR) Official data released on Wednesday revealed that Malaysia’s manufacturing industry operated at a lower capacity utilization of 78.2 percent in the second quarter of 2023. The Department of Statistics Malaysia (DOSM) reported that the capacity utilization decreased by 0.8 percentage points compared to the 79 percent recorded a year ago.
This marks the second decline in capacity utilization this year, with decreases observed across most sub-sectors, except for the manufacture of other non-metallic mineral products, basic metals, and fabricated metal products.
Compared to the previous quarter, the capacity utilization of the manufacturing industry experienced a further decline of 1.6 percentage points.
The downturn in the second quarter is evident in the manufacturing output, which saw only marginal growth of 0.1 percent in the industrial production index.
Several factors contributed to the lower capacity utilization in the second quarter, including weak demand, insufficient supply of materials, and the need for machinery and equipment repairs and maintenance.
The decline in capacity utilization highlights the challenges faced by Malaysia’s manufacturing sector, which plays a crucial role in the country’s economy. Efforts to address the issues affecting demand, supply chains, and equipment maintenance will be vital in improving the industry’s performance and ensuring its resilience in the face of ongoing economic uncertainties.
