Manufacturing Industry Capacity Utilisation Reaches 81.8 Pct In 1Q 2025

KUALA LUMPUR, May 26 (Bernama) -- Malaysia’s manufacturing industry capacity utilisation reached 81.8 per cent in the first quarter of 2025 (1Q 2025), increasing 1.0 percentage points from the 80.08 per cent recorded in the same quarter of the preceding year, said the Department of Statistics Malaysia (DOSM).

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the capacity utilisation was in line with the performance of the manufacturing sector’s industrial production index, which increased 4.2 per cent year-on-year during this quarter.

“In the first quarter of 2025, sub-sectors posted capacity utilisation above 80 per cent, with the highest rate recorded by the non-metallic mineral products, basic metal and fabricated metal products sub-sector at 85.2 per cent, which increased by 2.3 percentage points.

“This was followed by the increased 2.5 percentage points in textiles, wearing apparel, leather and footwear to a rate of 82.6 per cent,” he said.

On a quarter-on-quarter comparison, Mohd Uzir said the manufacturing industry’s capacity utilisation recorded a mild decline of 0.1 percentage points compared to 4Q 2024’s 81.9 per cent.

“The year-on-year increase in monthly capacity utilisation performance was recorded throughout 1Q 2025, which was January 2025 (81.8 per cent; +0.9 percentage points); February 2025 (81.2 per cent; +1.4 percentage points); and March 2025 (82.5 per cent; +0.8 percentage points).

Mohd Uzir added that the capacity utilisation in the export-oriented industries increased during this quarter by 1.1 percentage points year-on-year to 80.6 per cent from 79.5 per cent recorded in 1Q 2024.

“The highest rate resulted in the manufacture of furniture and the manufacture of machinery and equipment sub-sectors, which increased by 0.4 ppts to 88.4 per cent and by 2.2 ppts to 85.9 per cent, respectively,” he said.

Nonetheless, Mohd Uzir said that three industries recorded capacity utilisation below 80 per cent, namely the manufacture of vegetable and animal oils and fats (72.8 per cent), the manufacture of wood and products of wood and cork, except furniture, the manufacture of articles of straw and plaiting materials (75.4 per cent) and the manufacture of computer, electronics and optical products (79.2 per cent).

Compared to 4Q 2024, he said that the capacity utilisation rate of the export-oriented industries declined marginally by 0.3 percentage points from 80.9 per cent in the preceding quarter.

In addition, he said that the domestic-oriented capacity utilisation industries remained positive, albeit at a slower rate of 0.9 percentage points to 84.5 per cent in 1Q 2025.

“Most of the industries in this segment posted the higher utilisation rates, particularly in the manufacture of fabricated metal products, except machinery and equipment (+3.4 ppts; 86.6 per cent); and the manufacture of other non-metallic mineral products (+1.8 ppts; 87.3 per cent).

“Nevertheless, the manufacture of motor vehicles, trailers and semi-trailers recorded a decline to register a rate of 82.9 per cent, followed by the manufacture of paper and paper products industry with 77.9 per cent,” he said.

Mohd Uzir said that factors such as low demand, insufficient supply of materials, and the repair and maintenance of machinery and equipment remained the main cause of the under-utilisation of capacity in the manufacturing industry.

“Compared to the last quarter, the capacity utilisation in the domestic-oriented industries was up by 0.6 percentage points from 83.9 per cent,” he said.

Mohd Uzir said that the manufacturing industry capacity utilisation for seven states surpassed the national rate in the first quarter of 2025, namely Wilayah Persekutuan Labuan (98.5 per cent), Terengganu (86.7 per cent), Johor (85.2 per cent), Pahang (84.5 per cent), Melaka (84.2 per cent), Selangor (83.6 per cent) and Negeri Sembilan (83.0 per cent).

“Whereas, the lowest capacity utilisation rate posted by Kelantan with 66.2 per cent decreased by 3.6 percentage points compared to the same quarter last year,” he added.

-- BERNAMA