KUALA LUMPUR: Malaysia’s manufacturing industry operated with a 79.6 per cent capacity utilisation in the first quarter of 2023 (1Q 2023), said the Department of Statistics Malaysia (DoSM).
Chief statistician Datuk Sri Dr Mohd Uzir Mahidin said the manufacturing industry capacity utilisation statistic is a new indicator released by DoSM which would provide users with another viewpoint in assessing the performance of the manufacturing sector in Malaysia.
“This report presents statistics for 2015 until 1Q 2023 at the national and state levels.
“Capacity utilisation refers to the ratio of actual output produced to the production of output at full capacity through an optimal combination of machinery, raw materials and labour,” he said in a statement today.
Mohd Uzir said the capacity utilisation of the manufacturing industry for 2015 to 2022 was in the range of 69.8 per cent to 80.4 per cent.
“The lowest utilisation rate of the manufacturing industry was in 2020 (69.8 per cent) following the implementation of a movement control order due to the Covid-19 pandemic, while a high utilisation rate above 80.0 per cent was reached in 2015, 2016 and 2022 with a rate of 80.1 per cent, 80.2 per cent and 80.4 per cent, respectively,” he said.
Mohd Uzir said the manufacturing industry in 1Q 2023 operated with a capacity utilisation of 79.6 per cent, lower by 1.5 percentage points as compared to a year ago of 81.1 per cent.
“The downturn was primarily attributable to decreases in almost all sub-sectors except for transport equipment and other manufactures,” it said.
The chief statistician said the manufacturing industry’s monthly capacity utilisation rate picked up in March 2023, reaching 80.6 per cent after two months of operating below 80.0 per cent of capacity, which was 79.2 per cent (January 2023) and 79.1 per cent (February 2023).
“On the other hand, the capacity utilisation rate was lower compared to the same month of the preceding year, contributed by low demand, insufficient supply of materials as well as repair and maintenance of machinery and equipment,” he said.
Meanwhile, Mohd Uzir said the highest capacity utilisation rate in 1Q 2023 was recorded by the sub-sector of transport equipment and other manufactures with 84.0 per cent, which increased by 3.0 percentage points year-on-year, followed by the manufacture of petroleum, chemical, rubber and plastics.
He said the domestic-oriented industry registered a capacity utilisation rate of 80.5 per cent in 1Q 2023, which increased slightly by 0.04 percentage points compared to the same quarter last year.
“However, capacity utilisation in the export-oriented industry declined by 2.0 percentage points year-on-year to 79.3 per cent this quarter.
“The manufacturing industry in six states operated at a capacity exceeding 80 per cent, namely Wilayah Persekutuan Labuan (93.3 per cent), Kedah (83.8 per cent), Sarawak (81.6 per cent), Melaka (81.4 per cent), Negeri Sembilan (81.1 per cent) and Johor (80.4 per cent).” he added. - Bernama
