Chief Statistician Uzir Mahidin said the decrease was mainly due to the continuous decline of 12.3% in the petroleum, chemical, rubber, and plastic sub-sectors.
“Additionally, the food, beverages, and tobacco sub-sectors contracted by 1.7% and the wood, furniture, paper, products and printing sub-sectors fell by 0.7%,” he said in the monthly manufacturing statistics report released today.
As compared to the preceding month, the sales value increased by 4.3% as against RM152.2 billion recorded in August 2023.
The sales value of export-oriented industries, which represented more than two-thirds of total sales, declined by 5.1% in September, mainly attributed to the decrease in the manufacture of coke and refined petroleum products, manufacture of machinery and equipment, as well as the manufacture of vegetable and animal oils and fats.
Nonetheless, the domestic-oriented industries sustained their resilience and grew 8.1% in September (August 2023: 7.2%).
The continuous expansion was primarily underpinned by the substantial rise in the sales value of the manufacture of fabricated metal products, except machinery and equipment; as well as the manufacture of motor vehicles, trailers, and semi-trailers, and the manufacture of food products.
Uzir said the manufacturing sector engaged 2.37 million persons in September 2023, an increase of 2.4% as compared to the 2.32 million persons registered a year earlier.
Salaries and wages paid in the manufacturing sector increased by 3.2% year-on-year (y-o-y), totalling RM8.1 billion in September.
Malaysia’s Industrial Production Index decreases
In another report, the statistics department said Malaysia’s Industrial Production Index (IPI), which consists of three sectors namely mining, manufacturing and electricity, slipped by 0.5% y-o-y in September.
The decrease was mainly influenced by the 5.2% downturn in the mining sector.
“Conversely, the manufacturing sector returned to marginal growth of 0.4% in September after experiencing a declining trend for three consecutive months, while the electricity sector ascended by 2.5% as against 1.9% registered in August.
“The expansion in manufacturing output was primarily fuelled by the steady performance of domestic-oriented industries, which accelerated by 5.9% in September.
“This upturn was underpinned by the manufacture of fabricated metal products, except machinery and equipment (9.6%), manufacture of food processing products (8.2%), and manufacture of other non-metallic mineral products (8%),” he said.
On a monthly basis, the IPI showed continuous expansion with 1.1% growth after registering 2.8% in August.
Uzir said the decline in the mining sector output was influenced by natural gas production, which returned to negative territory, with a decline of 7.8% as opposed to the 2.6% increase in August.
Additionally, crude oil and condensate output continued its declining trend, registering a negative 1.4% in September (August 2023: -3.3%).
As for the electricity sector, the output advanced further by 2.5% in September after registering 1.9% growth in the previous month, he said.