Malaysia’s growth may lose momentum: Ambank

A corner of Kuala Lumpur (Photo: asiafundmanagers.com)

Kuala Lumpur (VNA) – Ambank Group Research said Malaysia’s economic rebound in the third quarter of 2020 could be losing momentum.

According to Ambank chief economist and head of research Anthony Dass, the manufacturing purchasing managers’ index (PMI) remained in the contraction region for the fourth consecutive month. The index eased to 48.5 from 49 in September.

Manufacturing optimism is softening due to the increase in the number of COVID-19 infections, and renewed restrictions to contain its spread, he explained.

As a result, both output and new orders slowed further in October as compared to the previous month.

Dass said uncertain demand has led to stocks of both purchases and finished goods depleting in October.

In addition, manufacturers experienced supply chain delays again as the impact of the COVID-19 restrictions at home and abroad.

“This has raised input prices. With a lack in capacity building, employment continues to come under pressure”, he said./.