Strong Manufacturing Growth Ahead...in Malaysia

The Federation of Malaysian Manufacturers (FMM) has projected 7.2 percent growth for the manufacturing sector this year, from five percent in 2003, as strong electronic orders lead firms to reopen assembly lines, newspaper reports say.

FMM president Mustafa Mansur was quoted by The Star as saying the rosier outlook was based on an overall improvement in manufacturing, especially in electrical and electronics sectors, in line with the country's economic growth.

The manufacturing sector, which accounts for 30 percent of Malaysia's economy, rebounded late last year fuelled by stronger global demand and a recovery in the semiconductor sector.

Manufacturing sales in November rose 11.40 percent year-on-year to 29.30 billion ringgit (7.71 billion dollars) for a third consecutive month of double-digit growth. Malaysia's exports were worth 342.5 billion ringgit in the first 11 months of 2003 and were expected to hit 380 billion ringgit for the whole year.

Prime Minister and Finance Minister Abdullah Ahmad Badawi has said the economic outlook remains positive and predicted growth of 5.5 to 6.0 percent for this year, up from the 4.5 percent expected for 2003.

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