KUALA LUMPUR, Jan. 3 (Xinhua) -- Economists on Wednesday foresaw Malaysia's manufacturing sector to improve gradually in the near term.
Kenanga Research said in a note that Malaysia's manufacturing Purchasing Managers' Index (PMI) is expected to gradually improve in the near term, attributed to the potential upswing in the technology sector and China's gradual recovery, both of which are expected to contribute to an improvement in Malaysia's export performance moving forward.
"Nevertheless, our outlook remains cautiously optimistic, as rising geopolitical tensions could disrupt the global supply chain and potentially impact global trade activity," it said.
Against this backdrop, the research house retained the fourth quarter 2023 gross domestic product (GDP) growth forecast at 3.7 percent, as growth is likely to be supported by a resilient domestic demand, bolstered by year-end festive spending and a continued increase in tourist arrivals.
Hence, it expects Malaysia's 2023 growth to align with its projection of 3.5 percent to 4 percent and anticipates it to expand to 4.9 percent in 2024.
Meanwhile, MIDF Research said in a note that it foresees demand outlook will gradually pick up and support for regional trade recovery, and believes this explains the continued optimism indicated by the local manufacturers.
PublicInvest Research, on the other hand, said in a note that in the near term, it is probable that Malaysia's PMI will align with global trends, consistently indicating a level below the crucial expansion threshold of 50 points.
The research house anticipated this trend to persist before potentially bottoming out in the latter part of the first half of 2024. ■
