The seasonally adjusted data released by S&P Global yesterday showed that Malaysia’s Manufacturing Purchasing Managers Index (PMI) rose to 49 in April from 48.4 in March, suggesting an improved GDP growth.

“The improvement was due to a significant increase in external demand, marking the first improvement in 12 months,” Kenanga said in a statement.

Overall, the investment bank kept its GDP forecast for the first quarter of 2024 (Q1 2024) unchanged at 3.3% versus 3% in the fourth quarter (Q4) 2023, compared to the statistics department’s advance estimate of 3.9%.

“Growth is expected to accelerate in the second half of 2024 (H2 2024) due to the lower base effect recorded last year,” it said.

It said a PMI reading above 50 points indicates an expansion in the manufacturing sector while below 50 indicates a contraction.

Meanwhile, MIDF Amanah Investment Bank Bhd’s research unit, MIDF Research has kept its forecast on Malaysia’s exports of goods to rebound by 5.2% in 2024 from a contraction of 8% in 2023 following the better manufacturing data in April.

“Looking ahead, we foresee better pick-up of global trade activities as regional economies have recorded improving manufacturing PMI figures.

“For instance, China registered 51.4 versus 51.1 in March 2024, the Philippines 52.2 (March 2024: 50.9), Vietnam 50.3 (March 2024: 49.9), Taiwan 50.2 (March 2024: 49.3) and Japan 49.6 (March 2024: 48.2),” it said in a separate note.