• Manufacturing sales value up 19.5% YoY to RM161.7bn in September

• Manufacturing sector grew 22.5% YoY in 3Q22

• Manufacturing sector employment rose by 3.8% YoY

• Productivity increased by 15.1% YoY in September

• Manufacturing sales will remain robust

Malaysia’s manufacturing sales registered strong growth in September growing by  19.5% YoY to reach a record high sales value of RM161.7bn. The YoY increment in  September was driven by the electrical & electronics (E&E) products (Sep: 24.7%; Aug: 25.8%; Jul: 26.1%), petroleum, chemical, rubber & plastic products (Sep:  27.2%; Aug: 27.6%; Jul: 19.1%) and food, beverages & tobacco products (Sep: 7.1%;  Aug: 18.4%; Jul: 14.4%). On MoM basis, the sales value rose by 2.7% while in a seasonally adjusted terms,  the sales value increased by 0.6%.

Strong manufacturing sales was again responsible for most of the hiring in the manufacturing  sector. In September, the manufacturing sector added 2,316,961 persons, an increase of  3.8% YoY. The increment was contributed by the E&E sector (6.6%), textiles, wearing  apparel, leather and footwear (4.3%), transport equipment and other manufacture products  (4.3%) and food, beverages, and tobacco (2.7%). On MoM basis, the number of employees  increased 0.3% as compared to 2,309,353 persons registered in the preceding month.

Salaries & wages paid amounted to RM7.9bn, rose by 5.4% YoY or RM405.7mn in September.  Meanwhile, salaries & wages paid in September increased by 1.5% MoM (RM113.2mn). The  average salaries & wages paid per employee in September was RM3,403, moderated at  1.5% YoY whilst on month-on-month basis, average salaries & wages paid per employee  grew 1.1%.

Productivity or sales value per employee in September increased by 15.1% YoY to register  RM69,787. Meanwhile, the average sales value per employee rose 2.4% MoM.

Source: BIMB Securities Research - 8 Nov 2022