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Overview
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| In the second quarter of 2005, the productivity level for the manufacturing sector increased by 4.5 per cent compared with the first quarter of 2005. Malaysia's external trade balance also continued to register a surplus in the second quarter of 2005. The industrial production index of the manufacturing sector rose by 2.5 per cent from 255.4 in the first quarter of 2005 to 261.7 in the second quarter. |
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Trade
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External trade balance registered a surplus of RM22.86 billion in the second quarter of 2005 compared with RM25.01 billion in the first quarter of 2005.
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Exports increased by 6.6 per cent to RM130.73 billion in the second quarter of 2005. This was due to increase in exports of electrical and electronics (E&E) products, machinery, appliances and parts, wood products, optical and scientific equipment, manufactures of metal, textiles and apparel, iron and steel products and rubber products.
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Imports increased by 10.6 per cent to RM107.86 billon in the second quarter of 2005. This was mainly due to higher imports of E&E products, followed by machinery, appliances and parts, chemicals and chemical products and transport equipment.
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Investments
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A total of 300 projects were approved in the manufacturing sector in the second quarter of 2005 (new projects: 181; expansion/diversification projects: 119), with total investments amounting to RM10.5 billion.
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Of the RM10.5 billion approved in the 300 projects, expansion/diversification projects involved an investment of RM5.6 billion or 53.3 per cent, while new projects accounted for RM4.9 billion.
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Foreign investments in the approved projects amounted to RM5.8 billion, while domestic investments amounted to RM4.7billion. Domestic investments were mainly in new projects (RM3.8 billion or 80.7 per cent).
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The E&E products industry had the highest investments (RM5.7billion), followed by basic metal products (RM2.1 billion), food manufacturing (RM553.2 million), transport equipment (RM496.6 million), chemicals and chemical products (RM252.1million) and machinery manufacturing (RM204.7 million).
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The major sources of foreign investments were Singapore, Japan, USA, the Netherlands and the Republic of Korea (ROK).
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Productivity
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Productivity in the manufacturing sector (sales value per employee) recorded an improvement of 4.5 per cent to RM112,990 in the second quarter from RM108,155 recorded in the first quarter of 2005.
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Sales Value Of Production
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The manufacturing sector recorded a total sales value of RM115.2 billion in the second quarter of 2005 compared with RM109.6 billion in the first quarter. This was an increase of RM5.6 billion or 5.1 per cent. The sub-sectors which contributed to this higher sales value were E&E with an increase of RM3.6 billion or 8.0 per cent, crude oil refineries (RM1 billion or 10.2 per cent), food processing (RM379.9 million or 11.8 per cent), machinery and equipment (RM351 million or 28.1 per cent) and iron and steel products (RM173.8 million or 3.6 per cent). In the E&E sub-sector, sales value of semiconductors and other electronic components rose by RM2.2 billion or 8.3 per cent, followed by office, computing and accounting machinery (RM1.8 billion or 17 per cent). Sales value of cables and wires also increased by (RM253.5 million or 20.8 per cent), while sales value of radios, television sets, sound reproducing and recording equipment declined by RM618.2 million or 9.2 per cent.
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The other sub-sectors which recorded significant increases were rubber products (6 per cent), fabricated metal products (5.8 per cent) and paper products (8 per cent).
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Reduced sales were registered by chemicals and chemical products (-2.8 per cent), textiles and apparel (-3.3 per cent), professional and scientific equipment (-6.7 per cent) and footwear (-6.1 per cent).
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Total Trade
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Malaysia's total trade increased by 8.4 per cent in the second quarter of 2005 to RM238.59 billion from RM220.14 billion in the first quarter of 2005. Exports increased by 6.6 per cent to RM130.73 billion, while imports increased by 10.6 per cent to RM107.86 billion, resulting in a trade surplus of RM22.86 billion.
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The ASEAN, the United States of America (USA), Japan and the European Union (EU) continued to be Malaysia's major trading partners, accounting for 65.8 per cent of total trade in the second quarter of 2005. Together they absorbed 67.3 per cent of Malaysia's total exports and supplied 64 per cent of total imports in the second quarter of 2005.
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Major Export Markets
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ASEAN, the USA, the EU and Japan were Malaysia's major export markets in the second quarter of 2005. These markets collectively absorbed 67.3 per cent of total exports.
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Exports to ASEAN, valued at RM34.03 billion, accounted for 26 per cent of Malaysia's total exports, an increase of 3.7 per cent. Exports to all ASEAN countries registered increases.
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The USA remained as Malaysia's single largest export market, accounting for 20.6 per cent of Malaysia's exports, valued at RM26.96 billion, an increase of 24.7 per cent. Export to other major markets also increased namely, PRC, Hong Kong and Taiwan. However, exports to Japan and ROK declined.
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Exports to the EU increased by 2.6 per cent to RM15.01 billion. This was due to the higher exports to all major EU countries.
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Major Export Markets
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In the second quarter of 2005, exports of manufactured products increased by 7.3 per cent to RM101.70 billion compared with RM94.75 billion in the first quarter of 2005. Higher export of manufactured products was mainly due to the 9.4 per cent increase in exports of E&E products, valued at RM65.03 billion or 63.9 per cent of Malaysia's exports of manufactured products. Other major exports also registered increases such as machinery appliances and parts, wood products, optical and scientific equipment, manufactures of metal, textiles and apparel, iron and steel products, rubber products, manufactures of plastics, processed food and jewellery.
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Exports of mining goods increased by 0.9 per cent to RM16.18 billion, mainly due to increases in exports of crude petroleum and refined petroleum products.
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Exports of agricultural goods increased by 8.9 per cent to RM10.53 billion, contributed by higher exports of palm oil by 13 per cent, saw logs and sawn timber (12.9 per cent) and crude rubber (1.7 per cent).
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Major Import Products
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Imports of manufactured products in the second quarter of 2005 increased by 10.8 per cent to RM91.65 billion compared with the first quarter of 2005. The increase was mainly due to higher imports of E&E products which contributed 51.1 per cent of total imports of manufactured products. All major import products registered increases except for jewellery.
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Imports of mining increased by 9.9 per cent to RM8.71 billion, as a result of increases in imports of refined petroleum products.
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Imports of agricultural products increased by 0.1 per cent to RM4 billion, mainly due to increases in imports of cereal; vegetables, roots, tubers; and seafood, fresh, chilled or frozen.
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Approved Manufacturing Projects
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For the period January - June 2005, a total of 482 projects valued at RM12.97 billion were approved, of which 281 (RM6.4 billion) were new projects and 201 (RM6.5 billion) were expansion or diversification projects. Foreign investments amounted to RM6.5 billion (50.4 per cent), while domestic investments amounted to RM6.4 billion (49.6 per cent).
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Approvals By Country
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For the period April - June 2005, Singapore, Japan, the USA, the Netherlands and South Korea, together contributed RM5.2 billion, or 89.6 per cent of total foreign investment.
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Investments from Singapore were in a wide range of industries such as E&E products (RM1.6 billion), food manufacturing (RM237.5 million) and paper, printing and publishing (RM28.7 million), chemicals and chemical products (RM16.3 million), plastic products (RM12.2 million) and transport equipment (RM10.1 million).
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Investments from Japan were mainly in E&E products (RM1.5 billion), machinery manufacturing (RM77.4 million), transport equipment (RM39.7 million) and plastic products (RM18.9 million).
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USA's investments were concentrated in E&E products (RM784.2 million), paper, printing and publishing (RM20 million) and fabricated metal products (RM18.5 million).
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Investments from the Netherlands were focused in E&E products (RM385.2 million), while investments from ROK was in one large project (RM392.1 million) in the E&E products industry.
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Other major investing countries were Taiwan (RM105.8 million), Hong Kong (RM87.6 million) and Cayman Islands (RM81.8 million).
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Size Of Investments
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Sixteen (16) projects, each involving investments of RM100 million or more, were approved. Investments in these projects (RM7.4 billion) constituted 70.5 per cent of total investments approved.
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The approved projects were in the following industries:-
- E&E products (11 projects - RM4.9 billion);
- basic metal products (3 projects - RM2 billion);
- transport equipment (1 project - RM300 million); and
- food manufacturing (1 project - RM222.5 million).
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Fifty-nine (59) per cent (RM4.4 billion) of the investments were in expansion/diversification projects, concentrated in E&E products (RM4.1 billion) and basic metal products (RM302.1 million).
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For the period January - June 2005, a total of 19 capital-intensive projects (each with investments of RM100 million or above) were approved with total investments of RM8 billion, or 61.5 per cent of total investments in approved projects.
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| (Source: Ministry of International Trade and Industry, Malaysia)
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