The investment bank cited ongoing developments, including China’s positive economic dynamics and strengthened global semiconductor sales, reinforcing the positive outlook for Malaysia’s manufacturing sector and trade.

“Looking ahead, we stay bullish on Asean’s external environment in the third quarter of 2024, assuming growth acceleration in both the US and China during this period.

“As such, Malaysia’s growth will likely stay underpinned by externally-facing industries, specifically its manufacturing and trade sectors,” it said in a research note.

In addition, it said Malaysia’s manufacturing sector activities would be buoyed by resilience in export-oriented industries alongside a turnaround in trade performance.

“The electrical and electronics (E&E) export momentum shows signs of sustained improvement in the first five months of the year, and we expect E&E exports to remain well-supported by strong global demand,” it said.

The investment bank also noted that commodity-based sectors such as petroleum, petroleum-based products, and non-metal mineral and metal products are expected to benefit from higher commodity prices.

Additionally, the industrial production index momentum remains positive for May, supported by continued strength in export-oriented industries and expansion in domestic-oriented industries.