PUTRAJAYA: Malaysia’s Manufacturing Purchasing Managers’ Index (PMI) has soared to its highest level in six months to 49.3 points last month, from 47.9 points in September.
Finance Minister Lim Guan Eng said this would help Malaysia achieve its 2019 gross domestic product (GDP) growth target of 4.7 per cent.
“The sudden PMI jump from 47.9 points in September to 49.3 points in October is one of the highest increases in recent times, and it gives confidence to the country’s continued sustainable growth.
“Many other economies are facing growth challenges caused by the trade war, with Singapore even stating that they would be lucky to record any positive economic growth this year,” said Lim in a statement today.
The strong October PMI, he added, was due to new orders and stronger manufacturing output.
“Additionally, business outlook strengthened, and this has led to more manufacturing firms planning for expansion.
“As a result, total employment among manufacturers rose.”
Lim said the latest labour force statistics showed participation rates throughout the Malaysian economy rose to 68.6 per cent in August, a 0.1 percentage point increase from July.
“Total employment in August 2019 increased by 1.9 per cent year-on-year to 15.19 million people, while unemployment rates remained low and stable at 3.3 per cent.”
As what was shared in the tabling of the 2020 Budget, Lim said the government had targeted the 2019 Malaysian GDP to grow resiliently at 4.7 per cent.
“Based on the strong first half GDP expansion at 4.7 per cent, the biggest trade surplus for the first nine-months period was worth RM100.9 billion, and with the rising manufacturing PMI readings, the government is confident that the Malaysian economy will grow 4.7 per cent in 2019 as projected.”
Should the trade dispute between China and the United States de-escalate, Lim said there would be reasons for optimism of a more robust economic growth for Malaysia.