Malaysia's manufacturing sector growth to slow

Malaysia’s manufacturing sector growth to slow

Based on the report released by the Malaysia's Ministry of International Trade and Industry (MITI), Malaysia's manufacturing sector is expected to grow 7.6% in 2005, following the 9.8% rise in 2004. The decline in growth rate is primarily due to the expected drop in the electrical and electronics sector, which will be affected by the lower demand from the US, Japan and China. On the other hand, the manufacturing sector will remain the main engine of economic growth, with production of more high-value added products and entering into new markets. MITI indicates that demand for iron steel products for manufacturing activities is expected to increase due to the new plants, which will produce specific grade. However, demand for iron and steel products in the construction sector will not show a huge increase in 2005 as slowdown in public-sector spending.